Previously Convicted Physician Arrested For Fraud And Aggravated Identity Theft

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SPYROS PANOS, a former orthopedic surgeon, who was previously convicted of health care fraud, was charged with wire fraud, health care fraud, and aggravated identity theft, in connection with a scheme in which he assumed the identity of a licensed orthopedic surgeon and obtained over $860,000 in payments for reviewing patient files in Workers Compensation cases.  PANOS was arrested this morning at his home in Hopewell Junction, New York, and was presented before U.S. Magistrate Judge Paul E. Davison in White Plains federal court this morning.

According to the allegations contained in the Complaint unsealed today[1]:  

SPYROS PANOS, the defendant, was an orthopedic surgeon practicing in Dutchess County and residing in Hopewell Junction (the “PANOS Residence”).  In or about August 2013, PANOS surrendered his license to practice medicine, and on or about October 31, 2013, he pled guilty, in United States District Court for the Southern District of New York, to a health care fraud charge (the “Health Care Fraud Charge”).  In or about April 2014, PANOS began serving a 54-month sentence.  On or about September 16, 2016, PANOS was released to a halfway house and then, about a month later, to home confinement.  Since March 2017, he has been serving a two-year term of supervised release. 

In connection with medical treatment relating to Workers’ Compensation claims, a peer review may be conducted when a treating physician requests a variance in treatment.  The doctor performing the peer review is a licensed independent doctor who reviews the patient file but does not examine the patient, and writes a report opining whether the variance is appropriate.  There are companies that supply doctors who conduct such peer reviews.  Prior to being assigned to perform peer reviews, the doctor must establish that he/she has the proper credentials by providing, among other things: the schools from which the doctor earned his/her degrees and other educational credentials, the states in which he/she is licensed to practice medicine, and other pedigree and background information such as birth date and social security number.

In or about December 2013 (which was after PANOS pled guilty on October 31, 2013, and before he surrendered to serve his sentence on April 2, 2014) a company called Excel O LLC (hereafter “Excel O”) was formed.  The registered agent for Excel O is a family member of PANOS and is not a licensed physician (“Family Member-1”).

An orthopedic surgeon purporting to be practicing medicine at “Excel Orthopedics” (the “Excel Doctor”) performed peer reviews for several review companies.  The same credentialing information for the Excel Doctor was submitted to five of the Review Companies (the “Five Review Companies”), and they paid for the Excel Doctor’s peer review services by checks made out to Excel O LLC or Excel Orthopedics.  The Excel Doctor communicated with them using the same email address (the “Email Account”) that is subscribed to by the Excel Doctor and was created on or about September 13, 2013, approximately one month before SPYROS PANOS, the defendant, pled guilty to the Health Care Fraud Charge.  Thereafter, PANOS communicated with at least two of the companies by email and logging on to the companies’ secure servers through an IP address assigned to PANOS’s residence.

On or about December 21, 2013, approximately six months before PANOS surrendered to serve his prison sentence, an account in the name of Excel O was opened at a local credit union (“Excel O Account-1”).  Family Member-1 is the only name associated with the account. Between the time Excel O Account-1 was opened until about three months after PANOS surrendered to serve his sentence for the Health Care Fraud Charge, checks totaling over $239,000, issued by one of the above review companies, as well as a sixth review company, made out to Excel O LLC or Excel Orthopedics, were deposited into Excel O Account-1.  No further checks from peer review companies were deposited into Excel O Account-1.

On or about December 2, 2016, approximately two months after PANOS was released from prison, a second Excel O account was opened at the same credit union (“Excel O Account-2”) and, again, Family Member-1 is the only name associated with the account.  Between in or about December 2016 and in or about October 2017, over $636,500 in checks issued by the Five Review Companies, made out to Excel O LLC or Excel Orthopedics, were deposited into Excel O Account-2.

After the Review Companies’ checks were deposited into these accounts, money was removed through withdrawals of cash or checks that were made out to Family Member-1, drawn on the accounts, and then deposited into a third account (the “Family Account”).  The Family Account is in the name of Family Member-1 and two other members of PANOS’s family, neither of whom is a licensed physician.  From the Family Account, some money was withdrawn and over $100,000 was transferred to bank accounts in Hong Kong.  A member of PANOS’s family deposited Review Company checks into Excel O Account-2, withdrew money from that account, and transferred money into the Family Account.  And, on several occasions in September and October of 2017, PANOS and Family Member-1 went to the credit union and wire transferred money out of the Family Account. 

The doctor whose credentialing information was submitted to the review companies and represented to be the Excel Doctor’s credentials (“Doctor-1”) is a licensed physician who is an orthopedic surgeon employed by a practice in Westchester County, not Excel Orthopedics. Doctor-1 did not submit his/her credentialing information to the review companies referred to above, did not conduct any peer reviews, did not authorize PANOS or anyone else to use his/her credentialing information to conduct peer reviews, and did not receive any of the review company fees for services he/she was falsely represented to have performed.  

PANOS, 49, is charged in three counts.  The first count charges him with wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The second count charges him with health care fraud, which carries a maximum sentence of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The third count charges him with aggravated identity theft, which requires a two year prison term to be served consecutive to a sentence imposed for the wire and health care fraud charges.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York Inspector General for their assistance.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Bronx DA Scheduled Cases of Interest Week of April 9th

Monday, April 9, 2018
ADA Judge Part # Status	Defendant Name	Case Details
Powers,M. Barrett 60 Appearance	KEITH WALTON	Walton, an NYPD Deputy Inspector in the Bronx, is charged with Sexual Abuse and additional crimes for allegedly grabbing a female subordinate and ordering her to kiss him.

Tuesday, April 10, 2018
ADA Judge Part # Status	Defendant Name	Case Details
Brady, A. 96 Discovery	ALEN CALIFANO	Bronx man charged with Assault, Robbery and related crimes for allegedly breaking into a Jewish assisted-living facility and threatening to kill an 84-year-old man.
Kleinman, B. Fabrizio 92 Appearance	MICHAEL JENKINS	Bronx after-school worker charged with Rape and other sexual crimes for allegedly raping a 13-year-old student.
Suminski, G. Michels 77 Decision on Motions	MICHAEL QUILES	Charged with Attempted Murder and other crimes for allegedly shooting a 5-year-old boy in the head with the intention of firing at another man on June 5th, 2017 near East 167th Streeton Washington Avenue.
Navia, J. Barrett 60 Conference	NAOKI YAGUCHI	NYPD officer charged with Official Misconduct and four counts of Operating a Vehicle While Under the Influence of Alcohol for driving while intoxicated while he was on duty and responding to a police call in the 52nd Precinct.

Wednesday, April 11, 2018
ADA Judge Part # Status	Defendant Name	Case Details
NO	CASES OF INTEREST

Thursday, April 12, 2018
ADA Judge Part # Status	Defendant Name	Case Details
Kharkover, I. Neary 70 Sentencing	SHAKUR CARRASQUILLO	Bronx man to be sentenced for stabbing woman and trying to bribe her to no testify against him.

Friday, April 13, 2018
ADA Judge Part # Status	Defendant Name	Case Details
NO	CASES OF INTEREST

MAYOR DE BLASIO ANNOUNCES PROGRESS CONSTRUCTING NYC FERRY LANDING FOR SOUNDVIEW MAYOR DE BLASIO ANNOUNCES PROGRESS CONSTRUCTING NYC FERRY LANDING FOR SOUNDVIEW

Sixth NYC Ferry Route: Bronx route projected to serve 400,000 riders traveling to and from the Soundview community and Manhattan’s East 90^th Street, East 34^th Street and Wall Street/Pier 11

  Mayor Bill de Blasio announced progress constructing a new NYC Ferry landing in Soundview for a new route launching this summer. Deputy Mayor Alicia Glen, the City’s Economic Development Corporation, elected officials and community leaders toured the construction site.

The Soundview route is anticipated to serve 400,000 riders a year travelling between the South Bronx and a new landing at East 90^th Street, as well as existing landings at East 34^th Street and Wall Street/Pier 11 in Manhattan. Riders on the new route will be able to make free connections at East 34^th Street and Pier 11/Wall Street to the existing Astoria, Rockaway, East River, Lower East Side and South Brooklyn lines.

“NYC Ferry is a transit success story. It’s reducing commuting times for hundreds of thousands of New Yorkers and bringing direct access to jobs, schools, parks and cultural institutions to the doorstep of our most underserved neighborhoods. NYC Ferry is helping us make this the fairest big city in America,” Mayor Bill de Blasio said.

“From the Bronx to Far Rockaway and South Brooklyn, NYC Ferry opens up our waterways and connects New Yorkers as never before. As we work to keep our city diverse and prosperous, we want to be sure opportunity is accessible to everyone,” said Alicia Glen, Deputy Mayor for Housing and Economic Development.

“Extending NYC Ferry service to the residents of communities in the South Bronx is essential as we work to make New York a more equitable and traversable city,” said New York City Economic Development Corporation President James Patchett. “The two new routes that will start ferrying passengers this summer are a welcomed addition to the already wildly popular system.”

 “A thriving city requires us to consider new, alternative modes of transportation. Soundview is the perfect community to host new ferry service, and it is my hope that this new transit option will not only ease commutes for Bronx residents, but will provide travelers with a new way to visit and explore The Bronx. I thank NYCEDC and the administration for their work to expand ferry service to Soundview, and I look forward to bringing this service to other Bronx communities in the future,” said Bronx Borough President Ruben Diaz Jr.

The Lower East Side route, the other new route coming online this summer, is projected to serve nearly one million riders annually traveling to and from Manhattan’s Wall Street/Pier 11, Corlears Hook, Stuyvesant Cove, East 34th Street; and Long Island City, in Queens.

Initial projections had NYC Ferry carrying more than 4.6 million trips per year on 23 vessels across six routes – providing a new and easily accessible transit option to traditionally underserved communities where jobs and housing are growing rapidly.

In 2017, NYC Ferry served nearly 3 million riders across all four routes currently in operation. The total exceeded the projected number of riders by approximately 34%, or 800,000 riders. In response to the high demand, NYC Ferry announced construction of six higher-capacity boats, outfitted with larger engines and designed to hold up to 349 passengers per vessel.

At $2.75 a ride, and free transfers across the ferry system, the cost is the same as a subway ride.

In its inaugural year, NYC Ferry has employed more than 250 people, and is currently hiring for 75 new jobs, including captains, deckhands, customer service agents, ticketing, operations and other positions. New Yorkers of all backgrounds and skill levels are welcome to apply. For more information or to apply for a job with NYC Ferry, please visit ferry.nyc.

MY FIVE DAYS JOURNEY TO THE DOMINICAN REPUBLIC

WHAT YOU SHOULD KNOW

By Councilman Rev. Ruben Diaz

District 18 Bronx County, New York

  You should know that I just returned from a trip of five (5) days to the Dominican Republic. On Monday April 2, we arrived at Santo Domingo accompanied by the Rev. Dr. Jose Martinez the newly elected president of Radio Vision Cristiana Internacional, his wife Ana Martinez, Dr. Kittim Silva Bermúdez the Vice-President of Radio Vision Cristiana Internacional and Bishop Nicolas Angustia from the Mennonite Church who also serves as the presidential liaison between the New York Hispanic Ministers.  That same night we were welcomed with a tremendous dinner, which consisted of succulent typical Dominican cuisine at the Criselio Sánchez (FUNCRIS) Foundation chaired by Minister Felicia Valera Sanchez.

On Tuesday April 3 we were greeted at the National Palace for a private meeting with the President of The Dominican Republic the honorable Danilo Medina. That afternoon the Rev. Jose Martinez invited us to his condo where we played dominoes, and feasted on dinner prepared by Sister. Ana Martinez.

On the following day, Wednesday we met with the Hon. Ruben Maldonado Diaz the President of the Chamber of Deputies. There we were treated to a hearty lunch accompanied with other deputies.

Thereafter, we headed to the Chancellery where we were greeted by the Hon. Foreign Minister Miguel Vargas Maldonado and Ms. Peggy Cabral de Peña the widow of Peña Gómez.   From the Chancellery we were greeted at the television studio as guests of program "Punto y Coma" directed by my friend Juan Cruz Trifolio via T.V. station “Super Canal Caribe”.  Our events ended on Wednesday with an evening at The "Todos Unidos" Foundation directed by Ms. Dinamarca Reynoso de Pastrano.   We were very impressed with Foundation staff and humanitarian work to benefit the poor and needy of the country.

Thursday April 5th, we were up early to attend a television interview at the home of  Ms. Peggy Cabral by 8:00 a.m.   From the home of Ms. Cabral we headed to San Cristobal to the estate of former President Hipolito Mejia’s who invited us to feast on a meal where he personally and graciously served us a Dominican Dish (Asopao) that would raise the dead.

From the home of former President Mejia’s we headed towards the (FUNGLOBE) Foundation to meet with former President Leonel Fernandez, who welcomed shared pleasantries with us.   Our final day Friday April 6^th,  we returned to New York City to retake the reins of our responsibilities.

I want to thank Lic. Hector Mojica the Director of (OMSA) The Metropolitan Bus Services Office, Lic. Pedro Aguiar, Dinamarca Reynoso, Caonabo Muñoz, Pedro Sanchez, Gersan Sánchez and Mr. Geraldo Rosario for all their support, services and courtesy bestowed upon us during our visit to D.R.. 

The express purpose of our meeting with the diverse leaders of D.R., the interviews, and dialogues, where Mr. Antonio Cabrera President of the New York Taxi Federation, and Ms. Bertha Almonte and Ms. Felicia Valera were in attendance, was for the purpose of addressing the problems confronted by the Dominican Diaspora, exclusively the problems which affect the taxi industry and its drivers.  I explained the great participation and the creation of the industry leaders known as " The Group of 25".

It is important that you know that we intend to continue these dialogues with those leaders upon their visits to New York City in the future.

I am Councilman Rev. Ruben Diaz, and this is what you should know.

What Bronx Elected Officials are Saying about the Resignation of NYCHA Chair and CEO Shola Olatoye

STATEMENT FROM BOROUGH PRESIDENT DIAZ

  “Shola Olatoye’s time at the New York City Housing Authority was fraught with controversy. During her tenure, NYCHA further eroded the trust of the more than 400,000 New Yorkers who live in our public housing system—the very people the agency is charged to serve.

 

“Governor Cuomo’s recent announcement that he would heed the call of myself and others and issue an emergency declaration for NYCHA demonstrated that Ms. Olatoye’s position at the agency was untenable.

 

“Today's announcement allows our city to move forward. A leadership change at NYCHA is a welcome step towards rebuilding the reputation of the agency. I wish Ms. Olatoye well in her future endeavors,” said Bronx Borough President Ruben Diaz Jr.  

STATEMENT FROM CONGRESSMAN ADRIANO ESPAILLAT 

  “Thank you outgoing chairwoman Shola Olatoye for four years of service with NYCHA, a critical and valuable resource to New Yorkers that has served hundreds of thousands of residents in public housing throughout the City’s five boroughs,” said Congressman Adriano Espaillat (NY-13).

“We recently announced a significant increase of federal funding allocated for HUD, New York housing and NYCHA, including an increase in the Public Housing Capital from $1.942 billion to $2.75 billion, of which NYCHA will see a significant increase above last fiscal year’s funding level of $346,326,398, and an increase to Section 8 housing by 8.5% which will create more than 5,000 vouchers for residents. This was funding that was long overdue. It remains critical that we continue to invest federal funds and resources in NYCHA programs in an effort to support sustainable programs and create opportunities that will allow low and moderate income residents the ability to secure safe and affordable housing for their families.

“As we move forward during this transition, building on the increased federal investment in public housing, I look forward to working with Interim NYCHA Chairperson Stan Brezenoff in continued efforts to make NYCHA a better place for all residents.”

STATEMENT FROM STATE SENATOR GUSTAVO RIVERA

  The departure of Chairwoman Shola Olatoye is a disappointment, despite the scandals that rattled her and the authority in recent months. Lest we forget, the New York City Housing Authority is plagued by decades of negligence and chronic divestment. Ms. Olatoye was a dedicated public servant and partner who took on the toughest issues facing New Yorkers living in public housing. She and her team reduced repair times, forged new opportunities for residents, and helped secure more funding from the City and State than we've seen in years. While  most cities have abandoned or demolished public housing, she fought for the health, safety, and affordability of over 300,000 units. Although it is notable that NYCHA's needs are finally at the forefront, those who care about our fellow New Yorkers living and working in these developments should remember that NYCHA is not a political talking point. Residents have real concerns about their homes that require long-term investment and innovative solutions. Ms. Olatoye recognized the need and the complexity of bringing our public housing stock into the 21st century. I am saddened that she will no longer be on the front lines of our fight.

MAYOR DE BLASIO NAMES STANLEY BREZENOFF INTERIM CHAIR OF NYCHA

  Mayor Bill de Blasio today announced Stanley Brezenoff will serve as Interim Chair of the New York City Housing Authority, succeeding Shola Olatoye who will depart the post at the end of April. Under Olatoye’s leadership, the Housing Authority has been pulled back from the brink of bankruptcy, launched an interagency partnership that drove down crime in public housing 7% in 2017 and has reduced average wait time for basic repairs from 13 to 4.3 days. 

As Interim Chair, Brezenoff will partner with NYCHA’s new General Manager Vito Mustaciuolo to continue reversing decades of disinvestment in public housing, improving front-line services for residents and putting the City’s record investment to work replacing critical infrastructure like heating systems. NYCHA is the nation’s largest public housing authority, home to 400,000 residents—1 in 14 New Yorkers.

“The Housing Authority that the Chair inherited four years ago faced bankruptcy, an inability to make basic repairs and an alarming surge in violence. She was a change agent from Day One. Crime is down. Repairs are faster. Finances are stabilized. And NYCHA is putting record investment from the City to work making life better for the 400,000 New Yorkers that call NYCHA home. We’re grateful for her service,” said Mayor Bill de Blasio. “With a proven track record of transforming large agencies, I’m confident that Stanley Brezenoff will help to continue our progress while we search for a new chair.”

“While the challenges facing public housing are significant – I’m incredibly proud of the leadership team we’ve assembled and the strides we’ve made over the last 4 years to speed up repair times, reduce crime, launch a major development program and bring NYCHA into the 21st century,” said NYCHA Chair and CEO Shola Olatoye.“It’s been an honor to serve the 1 in 14 New Yorkers who call public housing home. I leave this role secure in the knowledge that we created a path for a stronger and safer NYCHA in the years ahead as the de Blasio Administration moves forward with NextGen.”

“This is one of the toughest jobs in America. Under Mayor de Blasio and Chair Olatoye, NYCHA has faced down enormous challenges, launched an enormous turnaround effort and improved the lives of residents,” said Stanley Brezenoff. “I’m committed to working with residents, finding new solutions and making progress that people will see and feel in their communities.”

The Mayor announced the transition at Ocean Bay Bayside Apartments, the nation’s largest Rental Assistance Demonstration conversion project. All 1,400 apartments in the complex—home to nearly 4,000 residents—are being renovated with brand new kitchens and bathrooms. The roofs, heating systems, elevators and windows at each of the 24 buildings are being fully replaced, and new resiliency measures including rooftop solar arrays and a flood wall are under construction. The NextGen NYCHA plan set a goal of transforming 15,000 apartments through RAD over ten years, as part of a multi-pronged strategies to improve public housing.

The de Blasio Administration has made an unprecedented commitment to preserve and strengthen public housing. This investment is part of the Administration’s total commitment to $2.1 billion to support NYCHA’s capital infrastructure from Fiscal Year 2014 to Fiscal Year 2027 and $1.6 billion to support NYCHA’s operations from Fiscal Year 2014 to Fiscal Year 2022. This investment includes $1.3 billion to fix over 900 roofs, over $500 million to repair deteriorating exterior brickwork at nearly 400 buildings, and $140 million to improve security at 15 NYCHA developments.  The City waived NYCHA’s annual PILOT and NYPD payments to the City, relieving NYCHA of nearly $100 million in operating expenses a year. In January 2018, the Mayor announced $13 million to improve NYCHA’s response to heating emergencies this winter, followed by an additional $200 million for long-term heating improvements at 20 NYCHA developments. 

ABOUT STAN BREZENOFF

Stanley Brezenoff served as President of New York City Health and Hospitals Corporation from 1981 to 1984 under Mayor Koch, governing the world's largest non-federal health care system. Mr. Brezenoff brought the system's $1.8 billion annual budget into line, secured full accreditation for the system's 11 hospitals, improved emergency medical services and brought personalized care into crowded municipal hospital clinics. Brezenoff also expanded the psychiatric transfer service (PTS) unit of the New York City Emergency Medical Service to ensure the mentally ill have access to the City's health system. Brezenoff became the City's Deputy Mayor for Operations in 1984 and served as First Deputy Mayor from 1985 to 1990.

Brezenoff then served as Executive Director of the Port Authority, where he was responsible for administration of the Hudson River bridges and tunnels, the region's four major airports, the PATH system, leasing and management of the original World Trade Center, several industrial development districts, and shipping ports in New York harbor.

Beginning in 1995, Mr. Brezenoff served as President and Chief Executive Officer of Maimonides Medical Center, then as CEO and President of Continuum Health Partners, Inc. Most recently, he was the interim CEO of New York City Health + Hospitals.

Brezenoff was born in East New York, and majored in Philosophy at Brooklyn College.

News From Congressman Eliot Engel

Engel Marks Equal Pay Day by Calling for Passage of the Paycheck Fairness Act

  Congressman Eliot L. Engel today marked Equal Pay Day by calling for the passage of H.R. 1869, the Paycheck Fairness Act.

Equal Pay Day falls on April 10^th, the 100^th day of 2018, symbolizing the 100 extra days that the average American woman had to work just to earn what men did in 2017. American women working full-time typically earn 80 cents for every dollar that men earn doing the same work.

This divide grows even wider for women of color. Black women’s Equal Pay Day will not come until August 7^th, and Latinas’ Equal Pay Day falls on November 1^st – meaning they must work nearly a full extra year to match men’s earnings.

To finally eliminate this pervasive pay gap, Congressman Engel is an original cosponsor of the Paycheck Fairness Act. This bill, introduced by Congresswoman Rosa DeLauro, would create stronger penalties for pay discrimination, allow women to join together in class-action lawsuits in response to sex-based pay discrimination, prohibit employers from punishing employees who share salary information, and take needed steps to ensure discriminatory salaries do not hold women back throughout their careers.

“There is absolutely no reason why any Member of Congress should oppose equal pay for equal work – and yet, only one House Republican has cosponsored the Paycheck Fairness Act,” Congressman Engel said. “This should not be a partisan issue in Washington. Women are not second class citizens and it’s long past time our laws reflected that.

“It is time to pass the Paycheck Fairness Act, and close the pay gap once and for all.”

Engel was an original cosponsor of the Lilly Ledbetter Fair Pay Act, which became law in 2009.

Engel: Make Sure You Take Advantage of ConEd’s Storm Reimbursement Program

  Congressman Eliot L. Engel is urging all those affected by last month’s storm outages to take advantage of Con Edison’s reimbursement program.

In a letter to ConEd, Engel demanded the utility company reimburse their customers for the series of outages that affected the area last month. ConEd has since announced that it will reimburse customers for food and prescription medicine spoilage if they lost power for at least three consecutive days. Those reimbursements for eligible residential customers amount to $225 without receipts, or up to $515 with receipts. Business owners are eligible for food spoilage reimbursements up to $10,200 with receipts. Those seeking to file for reimbursements for spoilage can check the company’s website here: http://bit.ly/2FD2mm8.

In addition, If you lost power for 3 days or more during the March 2 and March 7 nor’easters, ConEd will provide you with an adjustment to your bill that will reflect a one-time reduction to your monthly customer delivery charge. Customers will receive this credit on their bill by May 21.

“ConEd dropped the ball for thousands of New Yorkers during last month’s swing of nor’easters and its important they make these adjustments for their customers,” Engel said. “I demanded ConEd provide their customers with reimbursement for these outages, and while I am pleased they are working towards this goal, much more needs to be done to ensure another incident like this won’t take place in the future.”

Bronx Israel Independence Day Festival