THREE FORMER NEW YORK CITY CORRECTION OFFICERS PLEAD GUILTY TO SICK LEAVE FRAUD

 

  In federal court in Brooklyn, former New York City correction officer Eduardo Trinidad pleaded guilty to federal program fraud, admitting that he fraudulently obtained his salary from the New York City Department of Correction (DOC) by taking sick leave even though he was able to work. On February 15, 2023, and February 27, 2023, respectively, former New York City correction officers Steven Cange and Monica Coaxum also pleaded guilty to the same charge. This proceeding was held before United States Magistrate Judge Vera M. Scanlon. When sentenced, all three defendants face a maximum sentence of 10 years’ imprisonment.

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, New York Field Office (FBI), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty pleas.

“The defendants have admitted stealing taxpayer funds by collecting their full salaries while falsely claiming they were too sick to work,” stated United States Attorney Peace. “Sick leave abuse is a plague on the New York City Department of Correction that puts fellow officers and inmates at risk during the ongoing staffing crisis in the jails. This Office is working with our federal and local law enforcement partners to identify those who exploit the sick leave policy and hold them accountable.” 

DOI Commissioner Strauber stated: “These correction officers faked medical documentation to take sick leave they were not entitled to in the midst of a city jail staffing crisis. They violated DOC policy, and they broke the law. Their conduct — including travel around the country, partying, bowling, and home repairs, on stolen sick leave time — is an insult to the correction officers who do their jobs, who show up to work and risk their personal safety on a daily basis. I thank the United States Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation for their partnership in bringing this case to a close.” 

According to court documents and facts presented at the guilty plea proceedings, Cange fraudulently obtained more than $139,000 in salary while on sick leave from March 2021 to November 2022. During that period of time, Cange submitted more than 100 fraudulent medical notes to DOC claiming that he was at physical therapy or another medical provider when records subpoenaed from those providers demonstrate that Cange was not at those appointments. Law enforcement also observed Cange engaging in normal life activities with no apparent difficulty. 

Coaxum fraudulently obtained more than $80,000 in salary while on sick leave from March 2021 to April 2022, and Trinidad, her fiancée, fraudulently obtained more than $119,000 in salary while on sick leave from June 2021 to October 2022. Although Coaxum claimed to suffer from multiple injuries, evidence collected by investigators showed that she was able to work. During her sick leave, Coaxum submitted nearly 50 fraudulent medical notes to DOC stating that she had gone to a medical appointment at a time when law enforcement determined she was elsewhere. Additionally, evidence showed that on some occasions when Coaxum claimed to be injured and at home, she was traveling and attending parties.  

Trinidad also claimed that he was unable to work for over a year due to an injury. But video and photographic surveillance showed Trinidad performing home improvement work, bowling, and traveling abroad without any difficulty or help from equipment like an orthopedic boot, sling or cane which he used when attending required check-ins with DOC medical officials

The defendants were arrested in November 2022 and resigned from the DOC in January 2023. 

JOSE GONZALEZ FOUND GUILTY OF MURDER IN 2017 DEATH OF FDNY EMT YADIRA ARROYO

 

Jury Convicted Defendant of First-Degree Murder; He Ran Victim Over with Her Ambulance

 Bronx District Attorney Darcel D. Clark announced that Jose Gonzalez has been found guilty by a jury of the murder of FDNY Emergency Medical Technician Yadira Arroyo, who he ran over with her ambulance nearly six years ago.

 District Attorney Clark said, “Jose Gonzalez was convicted today of first-degree Murder in the horrendous death of Yadira Arroyo, a mother of five and 14-year veteran EMT, on March 16, 2017. The road to justice for Yadi was tortuous; this case was delayed because of numerous hearings regarding the defendant’s fitness to stand trial, but her family and FDNY colleagues were patient and steadfast from the beginning until this verdict. I thank the witnesses, who saw Yadi in her final moments, for their testimonies during the trial. Yadi lives on in the legacy of her children, and in the countless New Yorkers she assisted in their time of need.”

 District Attorney Clark said the defendant, Jose Gonzalez, 31, last of 2388 Creston Avenue, was found guilty of first-degree Murder. The verdict was reached after a nearly one-monthlong jury trial before Bronx Supreme Court Justice Martin Marcus. The defendant is scheduled to be sentenced on April 5, 2023. The trial against Gonzalez was delayed after multiple court hearings on the defendant’s mental fitness to stand trial. He was deemed unfit in May 2022 and was sent to a psychiatric facility and was then deemed fit to stand trial in September 2022.

 According to the investigation, on the evening of March 16, 2017 in the vicinity of Watson Avenue and White Plains Road, the defendant grabbed on to the back of the victim’s ambulance and rode on it, then jumped off and stole a backpack from a young man. The robbery victim flagged down EMT Yadira Arroyo’s ambulance and she got out of the vehicle and spoke briefly to Gonzalez. The defendant then jumped into the driver’s seat of the ambulance, and Arroyo and her partner, who was in the passenger seat, told him to get out. Gonzalez put the car in reverse, striking Arroyo, then drove forward, pinning her under the vehicle and dragging her across the intersection. The defendant crashed the vehicle into a snowbank and exited the ambulance.

 An off-duty MTA Police Officer was nearby and saw the defendant drag the victim with the ambulance and confronted him. When Gonzalez tried to run away, the Officer tackled the defendant and handcuffed him, with the help of several civilians.

 Arroyo sustained multiple injuries and was taken to Jacobi Medical Center, where she was pronounced dead.

 District Attorney Clark thanked the 43rd Precinct Detective Squad, specifically NYPD Detective Robert Rentas, and NYPD Detective Christopher Skulsky from Bronx Homicide for their work in the investigation. 

 District Attorney Clark thanked former MTA Police Officer Daniel McDade.

Doctor Sentenced To 12.5 Years In Prison For Illegally Distributing Oxycodone From Midtown Manhattan Practice

 

On February 13, 2023, Adelglass’s Former Office Manager, Marcello Sansone, was Sentenced to 10 Years in Prison

 Damian Williams, the United States Attorney for the Southern District of New York, announced that HOWARD ADELGLASS was sentenced today by U.S. District Judge Jed S. Rakoff to 150 months in prison for his participation in a conspiracy to illegally prescribe oxycodone.  ADELGLASS was convicted in November 2022 following a two-week trial before Judge Rakoff. 

U.S. Attorney Damian Williams said: “For years, Howard Adelglass illegally prescribed enormous quantities of highly addictive and deadly opioids to people he knew were suffering from substance abuse disorders or were dealers.  By monetizing his prescription pad and distributing mammoth quantities of oxycodone pills for no legitimate medical purpose, Adelglass practiced as a drug dealer, not a doctor.  Adelglass did not simply betray his medical oath; he destroyed lives and families and helped fuel the opioid epidemic gripping the nation.  Today’s sentence makes clear that this Office and our law enforcement partners will work tirelessly to hold responsible those who have contributed to the national opioid crisis no matter their professional stature.”

According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:

HOWARD ADELGLASS was a licensed physician.  Together with his office manager, MARCELLO SANSONE, he operated a pain-management clinic located in Midtown Manhattan (the “Clinic”).  The Clinic serviced purported patients seeking oxycodone and other pain-relief medications commonly diverted for illicit purposes.  In exchange for cash payments, sex acts, and cocaine, ADELGLASS wrote thousands of prescriptions for large quantities of oxycodone, many to individuals whom ADELGLASS knew did not need the pills for a legitimate medical purpose.  When they occurred, ADELGLASS’s examinations were perfunctory.  ADELGLASS's purported patients included individuals addicted to opioids and, in some cases, individuals who sold the oxycodone on the street.  Even when faced with clear evidence of his purported patients’ drug abuse and diversion, ADELGLASS continued to prescribe large quantities of oxycodone without a legitimate medical purpose and outside the scope of professional practice.

Initially, ADELGLASS staffed the Clinic with inexperienced young women, some of whom he caused to be addicted to oxycodone through illegal prescriptions.  Around October 2018, after serving as a primary source of patient referrals, SANSONE took over as the Clinic’s office manager.  In that role, SANSONE helped to control access to ADELGLASS and the lucrative prescriptions he wrote for medically unnecessary oxycodone.  With particularly vulnerable patients, ADELGLASS and SANSONE solicited and, in some instances, received sex acts in exchange for illegal oxycodone prescriptions.

Between in or about November 2017 and in or about September 2020, ADELGLASS prescribed more than 1.3 million oxycodone pills. 

In addition to their prison terms, ADELGLASS, 67, of New York, New York, and SANSONE, 37, of Old Bridge, New Jersey, were each sentenced to three years of supervised release.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, New York City Police Department, and the U.S. Department of Health and Human Services, Office of Inspector General.

Governor Hochul Announces $31.4 Million for School Technology and Security Enhancements

 

Funding Secured Through the Smart Schools Bond Act

61 Investment Plans Approved by Smart Schools Review Board

$2 Billion Smart Schools Bond Act Supports Classroom Technology, School Connectivity and High-Tech Security

 Governor Kathy Hochul today announced the approval of 61 Smart Schools Investment Plans focused on reimagining education in an evolving age and boosting school security. The approved plans, totaling $31.4 million, are part of the $2 billion Smart Schools Bond Act, a sweeping education technology program.

"Inefficient technology was a huge hurdle during the COVID-19 pandemic - perhaps nowhere more evident than in our schools - and our students' educational and social experiences suffered," Governor Hochul said. "This $31.4 million investment will allow students to access the technology to bring them the opportunity to learn at their own pace while providing interactive experiences both inside and outside of the classroom."

The Smart Schools Review Board met today for the 19th time to consider investment plans submitted by school districts and special education schools. The Board is composed of the Director of the Budget, the Chancellor of the State University of New York, and the Commissioner of the State Education Department.

The plans approved by the Board were submitted by 57 school districts and one special education school. Projects include $16.6 million for high-tech security, $7.2 million for classroom technology, $7.1 million for school connectivity, and $500,000 for nonpublic schools' classroom technology and school connectivity. A summary of the plans is available here.

The investments authorized today will help ensure student safety and modernize classrooms statewide. High-tech security tools supported by the Smart Schools Bond Act include entry control systems, video systems, and emergency classroom notification systems. These upgrades are critical as the State and local partners work to bolster the safety of all public spaces.

New technology purchases supported by the Smart Schools Bond Act include computer servers, interactive whiteboards, tablets, desktop and laptop computers, and high-speed broadband and wireless connectivity. These tools help students to learn at their own pace, extend opportunities for interactive experiences both inside and outside the classroom, and promote parent-teacher communication. These purchases are particularly vital in the wake of the COVID-19 pandemic, helping students to learn and succeed under multiple learning models including remote learning when necessary.

In 2014, New York State invested $2 billion in its schools through a Smart Schools Bond Act—an initiative to finance educational technology and infrastructure, providing students access to the latest technology and connectivity needed to succeed and compete in the 21st century economy. New Yorkers agreed, as the voters authorized the Smart Schools Bond Act that November.

Following the proposal of the Bond Act, the Smart Schools Commission was established to gather information on strategies for how schools can most effectively invest the bond funds. This advisory commission recommended a focus on expanding robust broadband and wireless connectivity and utilizing transformative technologies. The plans approved today by the Smart Schools Review Board reflect many of the best practices identified by the Commission.

Department of Justice Announces Review of Memphis Police Department’s Use of Force and De-escalation Policies, and a Separate Review of Specialized Units Across the Country

 

The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) announced it will be undertaking two important reviews: one related to the Memphis Police Department (MPD) and one that will examine the use of specialized units within law enforcement. 

First, the COPS Office, through its Collaborative Reform Initiative Technical Assistance Center (CRI-TAC), will conduct a review of certain policies and practices of the Memphis Police Department. Memphis Mayor Jim Strickland and Memphis Police Chief Cerelyn J. Davis requested this review, which will cover policies, practices, training, data and processes related to MPD’s use of force, de-escalation and specialized units. At the conclusion of the review, the COPS Office will issue a public report outlining its findings and recommendations.

The COPS Office’s CRI-TAC initiative is led and supported by nine leading law enforcement stakeholder associations. CRI-TAC provides a wide array of technical assistance services using a “by the field, for the field” approach. Since its inception in 2017, the program has provided technical assistance for over 800 law enforcement engagements.

Separate from the Memphis review, the COPS Office will produce a guide for police chiefs and mayors across the country to help them assess the appropriateness of the use of specialized units as well as how to ensure necessary management and oversight of such units, including review of policies, tactics, training, supervision, accountability, and transparency.

“In the wake of Tyre Nichols’s tragic death, the Justice Department has heard from police chiefs across the country who are assessing the use of specialized units and, where used, appropriate management, oversight and accountability for such units. The COPS Office guide on specialized units will be a critical resource for law enforcement, mayors and community members committed to effective community policing that respects the dignity of community members and keeps people safe,” said Associate Attorney General Vanita Gupta. “The department is also pleased to be able to fulfill Memphis’s request for technical assistance on the police department’s use of force and de-escalation policies, as well as the use of specialized units.”

“Providing technical assistance to law enforcement agencies so they can continue to improve their practices, while they also develop and maintain healthy relationships with the community, is at the heart of what we do at the COPS Office,” said Director Hugh T. Clements Jr. of the COPS Office. “I know that this opportunity to work with MPD, as well as our examination of specialized units in law enforcement agencies across the country, will be important resources for both law enforcement and the communities they serve.”

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to over 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers.

Justice Department Finds Civil Rights Violations by the Louisville Metro Police Department and Louisville/Jefferson County Metro Government

 

Following a comprehensive investigation, the Justice Department announced that the Louisville Metro Police Department (LMPD) and the Louisville/Jefferson County Metro Government (Louisville Metro) engage in a pattern or practice of conduct that violates the U.S. Constitution and federal law. The Department also announced that it has entered into an agreement in principle with Louisville Metro and LMPD, which have committed to resolving the department’s findings through a court-enforceable consent decree with an independent monitor, rather than contested litigation. 

Specifically, the Justice Department finds that LMPD:

• Uses excessive force, including unjustified neck restraints and the unreasonable use of police dogs and tasers;

• Conducts searches based on invalid warrants;

• Unlawfully executes search warrants without knocking and announcing;

• Unlawfully stops, searches, detains, and arrests people during street enforcement activities, including traffic and pedestrian stops;

• Unlawfully discriminates against Black people in its enforcement activities;

• Violates the rights of people engaged in protected free speech critical of policing; and

• Along with Louisville Metro, discriminates against people with behavioral health disabilities when responding to them in crisis.

The Department also identified deficiencies in LMPD’s response to and investigation of domestic violence and sexual assault, including its responses to allegations that LMPD officers engaged in sexual misconduct or domestic violence. Deficiencies in policies, training, supervision, and accountability contribute to LMPD and Louisville Metro’s unlawful conduct.

“The Justice Department has concluded that there is reasonable cause to believe that Louisville Metro and LMPD engage in a pattern or practice of conduct that violates the constitutional rights of the residents of Louisville — including by using excessive force, unlawfully discriminating against Black people, conducting searches based on invalid warrants, and violating the rights of those engaged in protected speech critical of policing,” said Attorney General Merrick B. Garland. “This unacceptable and unconstitutional conduct erodes the community trust necessary for effective policing. It is also an affront to the vast majority of officers who put their lives on the line to serve Louisville with honor. And it is an affront to the people of Louisville who deserve better. The Justice Department will work closely with Louisville Metro and LMPD to negotiate toward a consent decree and durable reforms that protect both the safety and civil rights of Louisville’s residents.” 

“The findings are deeply troubling and sobering, and they compromise LMPD’s ability to serve and protect the people of Louisville,” said Associate Attorney General Vanita Gupta. “We are committed to working with Louisville on a path forward to constitutional policing and stronger police-community trust. Although police reform won’t happen overnight, focused effort and sustained commitment will bring us closer to transformed relationships, safe communities, and this nation’s promise of justice and equality under the law.”

“People in Louisville deserve policing that is constitutional, fair and non-discriminatory,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “Our investigation found that the police department and city government failed to adequately protect and serve the people of Louisville, breached the public’s trust, and discriminated against Black people through unjustified stops, searches, and arrests.  The police used excessive force, subjecting people to unlawful strikes, tasings, and canine bites. The police sought search warrants without justification and carried out no-knock warrants unlawfully, evading the constitution, defying federal law, and putting ordinary citizens in harm’s way. Today marks a new day and a new chapter for the people of Louisville.”

LMPD and Louisville Metro cooperated fully with the department’s investigation. The Justice Department provided a comprehensive, written report of its investigative findings to Louisville Metro and LMPD. The report acknowledges the changes already made by Louisville Metro and LMPD, and it identifies additional remedial measures that the department believes are necessary to fully address its findings.

The Department of Justice opened this investigation on April 26, 2021. The investigation was conducted by career attorneys and staff in the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Kentucky. The investigation included numerous onsite tours; interviews of LMPD officers, supervisors, and command staff; ride-alongs; review of thousands of documents; and review of thousands of hours of body-worn camera footage.  Department attorneys and staff also met with community members, advocates, service providers, and other stakeholders in the Louisville Metro area.

The department conducted this investigation pursuant to the 34 U.S.C. § 12601 (Section 12601), which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law, the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964, and Title II of the Americans with Disabilities Act. 

The findings announced are the result of the department’s civil pattern or practice investigation and are separate from the department’s criminal cases against former LMPD officers for federal crimes related to the tragic death of Breonna Taylor. These findings are also separate from the department’s ongoing investigation into the Commonwealth of Kentucky under the Americans with Disabilities Act. Additional information can be found at: www.justice.gov/opa/pr/justice-department-launches-civil-rights-investigation-kentucky-s-mental-health-service-0.

The department will be conducting outreach to members of the Louisville community for their views on remedies to address the department’s findings. Individuals may also submit recommendations by email at Community.Louisville@usdoj.gov or by phone at 1-844-920-1460.

This is one of eight investigations into law enforcement agencies opened by the Justice Department’s Civil Rights Division under Section 12601 during this Administration. The department has ongoing investigations into the Minneapolis Police Department; the Phoenix Police Department; the Mount Vernon (NY) Police Department; the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Worcester (MA) Police Department; and the Oklahoma City Police Department. 

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Western District of Kentucky is available at www.justice.gov/usao-wdky.

Information specific to the Civil Rights Division’s police reform work can be found here: www.justice.gov/crt/file/922421/download.

Attorney General James Recovers $350,000 for Homeowners Denied Mortgage Relief During COVID-19 Pandemic

 

BSI Failed to Provide Qualified Homeowners with Mortgage Relief at the Height of the Pandemic and instead Required Them to Make Payments

  New York Attorney General Letitia James today recovered $350,000 for hundreds of homeowners from the mortgage servicer, Servis One, Inc. d/b/a BSI Financial Services, Inc. (BSI), for failing to offer mandated mortgage relief to homeowners who could not make payments at the height of the COVID-19 pandemic. An investigation by the Office of the Attorney General (OAG) found that BSI encouraged homeowners who faced financial hardships or lost their job during the pandemic to continue making partial payments on their loans and did not offer mandatory relief. As a result of this agreement, BSI will pay $350,000 in penalties and restitution to as many as 160 homeowners in Rochester, New York City, and Long Island who were not offered the relief they were entitled to from BSI.

“During the height of the pandemic, as we were grappling with fear, stress, and financial difficulties, these homeowners were denied the basic support they were supposed to receive,” said Attorney General James. “BSI violated the law and left hundreds of families worrying about keeping a roof over their heads when they qualified for mortgage relief. Today’s agreement will put money back into homeowners’ pockets and continues our efforts to protect hardworking New Yorkers.”

At the start of the COVID-19 pandemic, federal and state authorities passed laws and regulations requiring the mortgage industry to provide temporary assistance to homeowners facing financial hardship. Mortgage loans backed or insured by federal authorities were subject to certain requirements that allowed homeowners facing a hardship to defer their mortgage payments for up to 12 months in 2020 and 2021. New York provided similar assistance to New York homeowners with loans that were not federally-backed, which required mortgage servicers to offer similar relief to homeowners with privately-owned mortgages.

The OAG found that BSI violated the law by failing to provide qualified homeowners mandatory mortgage relief. In one instance, a homeowner told BSI that he had lost his business income due to the pandemic and struggled to make payments. The agent told the homeowner to use his unemployment benefits or reduced income to make partial payments, although the homeowner was entitled to mortgage relief. In other instances, BSI allowed payments to be deferred only on a month-to-month basis, and in at least one instance, BSI told a homeowner that additional relief would be contingent on their willingness to make partial or future payments. In all of these instances, BSI failed to inform homeowners of their rights to defer their mortgage payments for up to 12 months.

Today’s agreement requires BSI to provide restitution to certain current and former customers with privately-owned mortgages whose loans were subject to relief requirements. BSI is required to offer forbearance relief to homeowners whose mortgage loans are currently serviced by BSI and who suffered a financial hardship but were initially denied mortgage relief. In addition, BSI will provide restitution of up to two monthly mortgage payments to homeowners whose loans were previously serviced by BSI and who suffered a financial hardship, but who were not offered mortgage relief.

Eligible homeowners will be contacted about this agreement and provided instructions for claiming restitution.

Attorney General James asks any homeowner who believes that their mortgage servicer is not offering proper loss mitigation options in the event of an economic hardship to file a complaint online with OAG's Consumer Frauds and Protection Bureau or call the office at 1-800-771-7755.

Laurence Doud, Former CEO Of Pharmaceutical Distributor, Sentenced To 27 Months In Prison For Conspiring To Unlawfully Distribute Controlled Substances And Defrauding The DEA

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that LAURENCE F. DOUD III, the former Chief Executive Officer of Rochester Drug Co-Operative, Inc. (“RDC”), was sentenced today in Manhattan federal court to 27 months in prison for conspiring to unlawfully distribute oxycodone and fentanyl and conspiring to defraud the Drug Enforcement Administration (“DEA”).  DOUD was sentenced today by United States District Judge George B. Daniels after being convicted at trial in February 2022.

U.S. Attorney Damian Williams said: “Laurence Doud cared more about his own paycheck than his responsibility as CEO of RDC to prevent dangerous opioids from making their way to pharmacies, drug dealers, and people struggling with addiction.  The sentence imposed today holds Doud responsible for shipping massive amounts of dangerous and highly addictive oxycodone and fentanyl to pharmacies that he knew were illegally dispensing those controlled substances and reaffirms this Office’s commitment to seeking justice for the many victims of the opioid epidemic.”

According to the Indictment and the evidence at trial:

Violations of the Federal Narcotics Laws

From 2012 through March 2017, DOUD knowingly and intentionally violated the federal narcotics laws by distributing, through RDC, dangerous, highly addictive opioids to pharmacy customers that he knew were being sold and used illicitly.  At the direction of its senior management, including DOUD, RDC supplied large quantities of oxycodone, fentanyl, and other dangerous opioids to pharmacy customers that its own compliance personnel determined were dispensing those drugs to individuals who had no legitimate medical need for them.  RDC, at the direction of DOUD and others, distributed controlled substances to those pharmacies even after identifying “red flags” of diversion, including dispensing highly abused controlled substances in large quantities; dispensing primarily controlled substances; dispensing quantities of controlled substances in amounts consistently higher than accepted medical standards; accepting a high percentage of cash for controlled substance prescriptions; dispensing to out-of-state patients; and filling controlled substances prescriptions issued by practitioners acting outside the scope of their medical practice, under investigation by law enforcement, or on RDC’s “watch list.”  In addition, and at DOUD’s direction, RDC frequently brought on pharmacy customers that had been terminated by other distributors.

Conspiracy to Defraud the DEA

From 2012 through March 2017, DOUD took steps to conceal RDC’s illicit distribution of controlled substances from the DEA and other law enforcement authorities.  Among other things, DOUD made the deliberate decision not to investigate, monitor, or report to the DEA pharmacy customers that DOUD and others at RDC knew were diverting controlled substances for illegitimate use.  Because they knew that reporting these pharmacies would likely result in the DEA investigating and shutting down RDC’s customers, RDC’s senior management, including DOUD, directed the company’s compliance department not to report them and instead to continue supplying those customers with dangerous controlled substances that the company knew were being dispensed and used for illicit purposes.  Among other things, pursuant to DOUD’s instructions, and contrary to the company’s representations to the DEA, RDC opened new customer accounts without conducting due diligence and supplied those customers – some of whom had been terminated by other distributors – with dangerous controlled substances.  Additionally, DOUD caused RDC to avoid filing suspicious order reports with the DEA as required by law.  As a result, the DEA’s ability to identify and prevent the illicit dispensing of highly addictive controlled substances by several of RDC’s pharmacy customers was impeded.

In addition to his prison term, LAURENCE F. DOUD III, 79, of Port Orange, Florida, was sentenced to three years of supervised release and ordered to pay a $100,000 fine.

Mr. Williams praised the outstanding investigative work of the DEA’s Westchester Tactical Diversion Team and thanked Special Agents of United States Attorney’s Office for their assistance.