10 Charged in Enterprise E mail Compromise and Cash Laundering Schemes Focusing on Medicare, Medicaid, and Different Victims – Division of Justice

The U.S. Division of Justice introduced fees right this moment in opposition to 10 defendants in a number of states in reference to a number of enterprise e-mail compromise (BEC), cash laundering, and wire fraud schemes that focused Medicare, state Medicaid packages, non-public well being insurers, and quite a few different victims and resulted in additional than $11.1 million in complete losses.

“The Prison Division and our companions are dedicated to holding accountable those that search to line their very own pockets by way of subtle enterprise e-mail compromise and cash laundering schemes focusing on private and non-private well being insurers in addition to particular person victims,” stated Assistant Legal professional Common Kenneth A. Well mannered, Jr. of the Justice Division’s Prison Division. “As these instances show, we’ll work tirelessly to fight fraud affecting Medicare and Medicaid, that are very important in offering well being care to tens of millions of People, together with a few of our most weak residents.”

The costs stem primarily from BEC schemes by which people posing as enterprise companions are alleged to have fraudulently diverted cash from victims’ financial institution accounts into accounts they or co-conspirators managed (typically by way of the usage of recruited “cash mules”) through the use of spoofed e-mail addresses, checking account takeovers, and comparable fraudulent strategies designed to deceive victims into believing they had been making professional funds.

“These defendants defrauded quite a few people, corporations, and federal packages, leading to tens of millions of {dollars} in monetary losses to very important federal packages meant to offer help to these in want,” stated U.S. Legal professional Ryan Ok. Buchanan for the Northern District of Georgia. “We pledge to proceed to work alongside our federal and state companions to analyze and prosecute those that have interaction in fraud and cash laundering actions leading to monetary and psychological hurt to members of our communities.”

“Within the District of South Carolina, we’ve seen a marked enhance in e-mail scams, id theft, and associated cash laundering schemes,” stated U.S. Legal professional Adair Boroughs for the District of South Carolina. “These indictments show our unwavering dedication to preventing web crime and holding web fraudsters accountable, significantly when their schemes goal taxpayer-funded packages meant to learn essentially the most weak amongst us.”

The prosecutions introduced right this moment embrace alleged schemes that fraudulently diverted funds meant for hospitals to offer medical providers to sufferers. For instance, fraudulent emails from accounts resembling these related to precise hospitals had been allegedly despatched to private and non-private medical health insurance packages requesting that future reimbursements be despatched to new financial institution accounts that didn’t belong to the hospitals. Unwittingly, 5 state Medicaid packages, two Medicare Administrative Contractors, and two non-public well being insurers allegedly had been deceived into making funds to the defendants and their co-conspirators as an alternative of depositing the reimbursement funds into financial institution accounts belonging to the hospitals. The defendants and their co-conspirators allegedly laundered the proceeds fraudulently obtained from these well being care profit plans and from different victims by, amongst different issues, withdrawing giant quantities of money, layering them by way of different accounts they or their co-conspirators opened within the names of false and stolen identities and shell corporations, transferring them abroad, and buying luxurious items and unique vehicles.

“These allegations depict a brazen effort to siphon monies, partially, from important well being care packages to as an alternative fund private achieve,” stated Deputy Inspector Common for Investigations Christian J. Schrank of the U.S. Division of Well being and Human Companies Workplace of Inspector Common (HHS-OIG). “A prime concern of HHS-OIG is the integrity of packages similar to Medicare and Medicaid, so it’s an utmost precedence to pursue people who financially exploit them. This coordinated motion is a major instance of the dedication that HHS-OIG and our legislation enforcement companions must defending the federal well being care system in opposition to fraud.”

“Tens of millions of Americans depend on Medicaid, Medicare, and different well being care methods for his or her well being care wants. These topics utilized complicated monetary schemes, similar to BECs and cash laundering, to defraud and undermine well being care methods throughout the USA,” stated Assistant Director Luis Quesada of the FBI’s Prison Investigative Division. “Elder fraud and romance fraud schemes utilized by the themes usually goal our most weak residents and the FBI is dedicated to pursuing justice for individuals who had been victimized by these schemes.”

This week, fees had been unsealed in opposition to six defendants within the Northern District of Georgia and in opposition to one defendant within the District of South Carolina. As well as, one defendant was beforehand charged within the Northern District of Georgia and one was beforehand charged within the Japanese District of Virginia. A 3rd defendant beforehand charged within the Northern District of Texas has entered a responsible plea and been sentenced. The alleged schemes prompted greater than $4.7 million in losses to Medicare, Medicaid, and personal well being insurers, and $6.4 million in losses to different federal authorities companies, non-public corporations, and people, similar to aged romance fraud victims who had been deceived into sending a whole lot of 1000’s of {dollars} to the defendants and their co-conspirators.

The seven defendants in opposition to whom fees had been unsealed this week are:

• Biliamin Fagbewesa, 31, of Columbia, South Carolina, was charged by indictment within the District of South Carolina on Nov. 8 with three counts of cash laundering and one rely of illegal procurement of naturalization. In accordance with courtroom paperwork, Fagbewesa allegedly used a stolen id to open financial institution accounts within the title of a shell firm to obtain greater than $1.4 million of proceeds fraudulently diverted from a state Medicaid program, a hospital, and others, roughly $583,000 of which Fagbewesa laundered and spent on, amongst different issues, Fagbewesa’s rental funds. If convicted of the highest rely, he faces a most penalty of 20 years in jail.

• Patrick Ndong-Bike, 32, of Atlanta, Georgia, was charged by indictment within the Northern District of Georgia on Nov. 15 with 4 counts of cash laundering. In accordance with courtroom paperwork, Ndong-Bike allegedly used false identities to open financial institution accounts within the names of these identities and shell corporations to obtain roughly $2.4 million of proceeds of BEC fraud and different comparable schemes, roughly $679,000 of which Ndong-Bike laundered and spent, together with proceeds that had been fraudulently diverted from Medicare and a number of other non-public corporations. If convicted of the highest rely, he faces a most penalty of 20 years in jail.

• Desmond Nkwenya, 35, of Atlanta, Georgia, was charged by indictment within the Northern District of Georgia on Nov. 15 with two counts of cash laundering and one rely of financial institution fraud. In accordance with courtroom paperwork, Nkwenya allegedly used false identities to open financial institution accounts within the names of these identities and shell corporations to obtain roughly $308,000 derived from BEC fraud and different comparable schemes, all of which Nkwenya laundered. Nkwenya additionally allegedly obtained roughly $119,000 because of a fraudulent Paycheck Safety Program mortgage software. If convicted of the highest rely, he faces a most penalty of 30 years in jail.

• Cory Smith, 29, of Atlanta, Georgia was charged by indictment within the Northern District of Georgia on Nov. 15 with three counts of cash laundering. In accordance with courtroom paperwork, Smith allegedly opened a checking account within the title of a false id and used that account obtain and launder greater than $57,000 fraudulently diverted from a non-public firm in a BEC scheme. If convicted of one of many counts, he faces a most penalty of 20 years in jail.

• Chisom Okonkwo, 26, of Atlanta, Georgia, was charged by indictment within the Northern District of Georgia on Nov. 15 with three counts of wire fraud, two counts of aggravated id theft, and 6 counts of cash laundering. In accordance with courtroom paperwork, Okonkwo allegedly used stolen and false identities to open accounts within the names of shell corporations that obtained roughly $830,000 in proceeds from BEC fraud and different comparable schemes, roughly $535,000 of which Okonkwo allegedly laundered by way of a wide range of transactions, together with withdrawing giant quantities in money. Okonkwo additionally allegedly paid for a luxurious automotive by way of a fraudulent mortgage she obtained within the title of a stolen id. If convicted of the highest rely, she faces a most penalty of 20 years in jail.

• Olugbenga Abu, 45, of Atlanta, Georgia, was charged by indictment within the Northern District of Georgia on Nov. 15 with one rely of financial institution fraud, one rely of wire fraud, and 4 counts of cash laundering. In accordance with courtroom paperwork, Abu allegedly used a false id to open a checking account that obtained and laundered greater than $95,000 of BEC fraud proceeds.  Abu additionally allegedly obtained a fraudulent mortgage of greater than $341,000 and fraudulently sought an extra $65,000 of mortgage proceeds from the Small Enterprise Administration (SBA).  If convicted of the highest rely, he faces a most penalty of 30 years in jail.

• Trion Thomas, 50, of Stone Mountain, Georgia, was charged by data within the Northern District of Georgia on Sept. 21 with conspiracy to commit cash laundering. In accordance with courtroom paperwork, Thomas allegedly obtained and laundered $93,000 of Medicare funds that had been fraudulently diverted due to a BEC scheme that focused Medicare. If convicted, he faces a most penalty of 20 years in jail.

The three defendants beforehand charged are:

• Malachi Mullings, 29, of Sandy Springs, Georgia, was charged within the Northern District of Georgia on Feb. 22 with conspiracy to commit cash laundering and 7 substantive cash laundering offenses. In accordance with courtroom paperwork, Mullings used quite a few financial institution accounts opened within the title of a shell firm, The Mullings Group LLC, to obtain and launder tens of millions of {dollars} derived from BEC schemes focusing on a well being care profit program, non-public corporations, and particular person romance rip-off victims. In a single occasion, Mullings laundered $310,000 fraudulently diverted from a state Medicaid program that had been meant as reimbursement for a hospital. In one other occasion, Mullings obtained $260,000 from a romance rip-off perpetrated on an aged sufferer, which he subsequently used to buy a Ferrari. If convicted of the highest rely, he faces a most penalty of 20 years in jail.

• Adewale Adesanya, 39, of Jonesboro, Georgia, pleaded responsible within the Northern District of Texas on June 2 to conspiracy to commit cash laundering and use of a false passport. In accordance with courtroom paperwork, Adesanya used a false passport within the title of “Timi Graig” to create a shell firm for the aim of opening financial institution accounts to obtain and launder greater than $1.5 million obtained from BEC schemes focusing on two state Medicaid packages, the IRS, the SBA, a non-public firm, and two aged romance rip-off victims. On Sept. 15, Adesanya was sentenced to 4 years in jail.

• Sauveur Blanchard Jr., 49, of Richmond, Virginia, was charged by indictment within the Japanese District of Virginia on Sept. 8, 2021, with conspiracy to commit cash laundering and 4 substantive cash laundering offenses. In accordance with courtroom paperwork, Blanchard allegedly opened financial institution accounts within the names of shell corporations to obtain and launder greater than $55,000 in Medicaid funds meant for a hospital however fraudulently diverted to Blanchard’s account. Trial on this matter is presently scheduled for Jan. 9, 2023.  If convicted of any of the counts, he faces a most penalty of 20 years in jail.

In every case, a federal district courtroom choose will decide any sentence after contemplating the U.S. Sentencing Pointers and different statutory elements.

The HHS-OIG; FBI Omaha Discipline Workplace and Seattle Discipline Workplace; IRS Prison Investigation; U.S. Division of Homeland Safety Homeland Safety Investigations; U.S. Division of State Diplomatic Safety Service; U.S. Secret Service; Division of the Military Prison Investigation Division; U.S. Division of the Treasury Workplace of Inspector Common; Federal Deposit Insurance coverage Company Workplace of Inspector Common; Arkansas Medicaid Fraud Management Unit; Wisconsin Division of Justice Division of Prison Investigation; Minnesota Commerce Fraud Bureau; and Polk County Sheriff’s Workplace in Iowa are investigating the instances.

Trial Attorneys Gary Winters, Chris Wenger, and Babu Kaza of the Prison Division’s Fraud Part’s Nationwide Speedy Response Strike Power are prosecuting the instances, together with Assistant U.S. Legal professional Kelly Connors for the Northern District of Georgia, Assistant U.S. Legal professional Kaitlin Cooke for the Japanese District of Virginia, and Assistant U.S. Legal professional Amy Bower for the District of South Carolina. Assistant U.S. Legal professional Rachel Scherle for the Southern District of Iowa supplied vital help within the investigation of those instances. The case in opposition to Adewale Adesanya within the Northern District of Texas was prosecuted by the Prison Division’s Fraud Part and Assistant U.S. Legal professional Marty Basu and former Assistant U.S. Legal professional Erica Hilliard for the Northern District of Texas.

The Fraud Part leads the Prison Division’s efforts to fight well being care fraud by way of the Well being Care Fraud Strike Power Program. Since March 2007, this program, comprised of 15 strike forces working in 24 federal districts, has charged greater than 4,200 defendants who collectively have billed the Medicare program for greater than $19 billion. As well as, the Facilities for Medicare & Medicaid Companies, working at the side of the Workplace of the Inspector Common for the Division of Well being and Human Companies, are taking steps to carry suppliers accountable for his or her involvement in well being care fraud schemes. Extra data might be discovered at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

An indictment and an data are merely allegations. All defendants are presumed harmless till confirmed responsible past an inexpensive doubt in a courtroom of legislation.

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