Former Executive Director Indicted for Embezzling Hundreds of Thousands Of Dollars From Queens-Based Non-Profit

Defendant Allegedly Used Stolen Funds to Pay for Vacations, Cosmetic Surgery and Luxury Cars

  In federal court in Brooklyn, a nine-count indictment was unsealed charging Semeo Doe, the former Executive Director of the Action Center for Education and Community Development, Inc. (Action Center) in Far Rockaway, Queens, with embezzling, and conspiring to embezzle, hundreds of thousands of dollars from that charity for his personal use.  Doe was also charged with aggravated identity theft, wire fraud and wire fraud conspiracy in connection with misrepresentations he made to the New York City Department of Youth and Community Development.  Doe was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo.   

       

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

 As is alleged in the indictment, between 2010 and May 2019, Doe served as a Director, and as the Executive Director, of Action Center, a not-for-profit organization that provided services to children and young adults, and provided meals to individuals in need.  Doe allegedly embezzled hundreds of thousands of dollars of Action Center funds to pay for personal expenses including international vacations, jewelry, luxury cars and cosmetic surgery.  As part of the scheme, he also caused Action Center to submit reimbursement requests for costs that were not incurred — including financial compensation for two employees for work allegedly performed after their deaths.  Doe concealed his scheme in part by forging the signatures of Action Center employees on checks he had issued in the employees’ names, and then endorsed the checks and deposited them into his personal bank account. 

“As alleged, Doe stole money that was supposed to feed the hungry and provide children with after-school services, and used it to finance his lavish lifestyle,” stated United States Attorney Donoghue.  “Today’s indictment serves notice that those who steal from charities to line their pockets will pay the price in the end.”  

“It’s difficult to imagine a justification for embezzling money slated to provide services for children and adults in need, but Doe was able to excuse this behavior—at least in some part—in exchange for luxurious personal items and international travel,” stated FBI Assistant Director-in-Charge Sweeney.  “Corrupting city-funded nonprofits isn’t just disgraceful, it’s also a federal crime.”

“This defendant allegedly diverted funds meant for youth and adult programming in Queens into his own pockets, using hundreds of thousands of public dollars he funneled through a shell corporation to pay for expenses for himself and his family, according to the charges,” stated DOI Commissioner Garnett.  “Fraud involving City nonprofits robs New Yorkers of programming that enriches lives and provides opportunity.  DOI is proud to work with the U.S. Attorney for the Eastern District of New York and the Federal Bureau of Investigation to investigate these crimes and hold accountable individuals who corrupt City-funded nonprofits for personal gain.”

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the embezzlement charge, the defendant faces a maximum sentence of 10 years’ imprisonment.  If convicted of conspiracy to embezzle public funds, the defendant faces a maximum sentence of five years’ imprisonment.  If convicted of wire fraud or conspiracy to commit bank fraud, the defendant faces a maximum sentence of 20 years.  If convicted of aggravated identity theft, the defendant faces a mandatory sentence of two years’ imprisonment.

Member Of Nine Trey Gangsta Bloods Pleads Guilty To April 21, 2018, Shooting Inside The Barclays Center

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FUGUAN LOVICK, a/k/a “Fu Banga,” pled guilty in Manhattan federal court to a shooting that he committed inside the Barclays Center on April 21, 2018, as part of his participation in the Nine Trey Gangsta Bloods (“Nine Trey”).  U.S. District Judge Paul A. Engelmayer accepted the defendant’s guilty plea.

U.S. Attorney Geoffrey S. Berman said:  “Today, Fuguan Lovick admitted to a brazen and dangerous act of violence.  While inside the Barclays Center with Tekashi 6ix 9ine and other Nine Trey gang members, Lovick fired a gun to intimidate rival gang members.  We continue our daily work with our law enforcement partners to keep our communities safe and to vigorously investigate acts of violence committed by gang members.”

As alleged in the Indictment and statements made in open court:

Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn.  Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business.  As admitted in open court today, on April 21, 2018, LOVICK discharged a firearm inside the Barclays Center in Brooklyn in order to scare rival gang members. 

LOVICK, 42, of Brooklyn, New York, pled guilty to assault with a dangerous weapon in aid of racketeering, which carries a maximum sentence of 20 years in prison, and to brandishing a firearm in furtherance of a crime of violence, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life.  LOVICK is scheduled to be sentenced before Judge Engelmayer on August 19, 2019.

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by Judge Engelmayer.           

Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  He also thanked the Kings County District Attorney’s Office for its assistance in the investigation.

South Carolina Man Charged With Trafficking 25 Handguns Into New York City

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. Devito, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the arrest of TORRIE JOHNSON, a/k/a “Torrie Terrel Johnson,” a/k/a “Black,” for trafficking 25 firearms from South Carolina into New York City, and for being a felon in possession of a firearm.  JOHNSON was arrested and presented before U.S. Magistrate Judge Ona T. Wang in the Southern District of New York.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Torrie Johnson traveled from South Carolina to sell more than two dozen firearms illegally to an undercover officer in New York in the span of less than four months.  Stopping the flow of illegal guns into New York is essential to keep our city safe, and arresting alleged prolific gun traffickers is fundamental in that effort.”

ATF Special Agent in Charge John B. Devito said:  “As alleged, Johnson was responsible for transporting over two dozen firearms to the streets of New York.  Illegal firearms trafficking often has a nexus to a host of other violent crimes in our community.  Thanks to the efforts of the ATF/ NYPD Joint Firearms Task Force a trafficking scheme that could have put many at risk was dismantled and destroyed.  ATF and its law enforcement partners stand committed to ridding our communities of these illegal guns and those responsible for putting them on the streets.  I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”

NYPD Commissioner James P. O’Neill said:  “While New York City continues to see record reductions in gun related violence, we must remain ever vigilant against illegal firearm trafficking in order to protect the people and communities we serve.  This arrest demonstrates that the cooperation with our local, state and federal law enforcement partners is producing real results that keep people safe, and ensure they feel safe too.”

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

On at least five occasions between January 23, 2019, and May 9, 2019, TORRIE JOHNSON, a/k/a “Torrie Terrel Johnson,” a/k/a “Black,” sold firearms to an undercover NYPD detective (the “UC”).  In total, JOHNSON sold 25 firearms to the UC in Manhattan and the Bronx, including a variety of 9 millimeter, .32, .38, .40, .45, and .380 caliber pistols and revolvers, as well as hundreds of rounds of assorted ammunition.

JOHNSON purchased the firearms in South Carolina, and transported them to New York for the purpose of selling them there.  On at least two occasions, the UC specifically told JOHNSON that he was planning to transport the firearms that JOHNSON had sold him to a foreign country, and resell them there for a profit.  JOHNSON also told the UC that he was attempting to obtain for sale to the UC a Century Arms Mini Draco AK-47 semi-automatic pistol.

JOHNSON, 41, of Sumter, South Carolina, has been charged with one count of firearms trafficking, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2, which carries a maximum sentence of five years in prison, and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) (2), which carries a maximum sentence of 10 years in prison.  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 a judge.

The charges in the Complaint are merely accusations, and JOHNSON is presumed innocent unless and until proven guilty.

Mr. Berman praised the outstanding investigative work of the ATF, the NYPD, and the Joint Firearms Task Force.

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

North Korean Cargo Vessel Connected To Sanctions Violations Seized By U.S. Government

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, and John Brown, Assistant Director of the Counterintelligence Division of the Federal Bureau of Investigation, announced today the filing of a civil forfeiture complaint against M/V Wise Honest (the “Wise Honest”), a 17,061-ton, single-hull bulk carrier ship registered in the Democratic People’s Republic of Korea (“DPRK” or “North Korea”).  The Wise Honest, one of North Korea’s largest bulk carriers, was used to illicitly ship coal from North Korea and to deliver heavy machinery to the DPRK.  Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks.  This conduct violates longstanding U.S. law and United Nations Security Council resolutions. 

U.S. Attorney Geoffrey S. Berman said:  “Today’s civil action is the first-ever seizure of a North Korean cargo vessel for violating international sanctions.  Our Office uncovered North Korea’s scheme to export tons of high-grade coal to foreign buyers by concealing the origin of their ship, the Wise Honest.  This scheme not only allowed North Korea to evade sanctions, but the Wise Honest was also used to import heavy machinery to North Korea, helping expand North Korea’s capabilities and continuing the cycle of sanctions evasion.  With this seizure, we have significantly disrupted that cycle.  We are willing and able to deploy the full array of law enforcement tools to detect, deter, and prosecute North Korea’s deceptive attempts to evade sanctions.”

Assistant Attorney General John C. Demers said:  “This sanctions-busting ship is now out of service.  North Korea, and the companies that help it evade U.S. and U.N. sanctions, should know that we will use all tools at our disposal — including a civil forfeiture action such as this one or criminal charges — to enforce the sanctions enacted by the U.S. and the global community.  We are deeply committed to the role the Justice Department plays in applying maximum pressure to the North Korean regime to cease its belligerence.”

FBI Assistant Director William F. Sweeney Jr. said:  “Working with our law enforcement and intelligence partners around the world gives the FBI the ability to interdict illicit activity globally.  Our counterintelligence efforts are squarely focused on protecting the American people.  This seizure should serve as a clear signal that we will not allow foreign adversaries to use our financial systems to fund weapons programs which will be used to threaten our nation.”

FBI Assistant Director John Brown said:  “Although barred from doing business in this country, North Korea continues to violate U.S. and international sanctions while simultaneously taking advantage of unwitting U.S. companies.  The FBI is committed to ensuring that North Korea be held responsible for their blatant disregard for U.S. law.  I am proud of the work done by the many men and women of the FBI who pursued this case.”

According to the documents filed today in Manhattan federal court:

Pursuant to the International Emergency Economic Powers Act and the North Korea Sanctions and Policy Enhancement Act of 2016, North Korea and other individuals or entities that the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has determined are involved in the facilitation of proliferation of weapons of mass destruction are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system.  The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, including the sale, supply, or transfer of coal.

From at least November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation, to export coal from North Korea to foreign purchasers, and to import machinery to North Korea (the “Korea Songi Scheme”).  On June 1, 2017, OFAC designated Korea Songi General Trading Corporation, also known as “Songi Trading Company,” pursuant to Executive Order 13722 for its involvement in the sale, supply, or transfer of coal from North Korea.  OFAC also determined that Songi Trading Corporation was a subordinate of the Korean People’s Army.

On or about March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea.  On or about April 2, 2018, foreign maritime authorities intercepted and detained the Wise Honest.  Maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (“AIS”) capable of providing information about the vessel to other ships and coastal authorities.  However, despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017. 

Participants in the Korea Songi Scheme attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing different countries for the Wise Honest’s nationality and the origin of the illicit coal in shipping documentation.

In connection with the Korea Songi Scheme, Kwon Chol Nam, one of Korea Songi Shipping Company’s representatives, paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through unwitting U.S. financial institutions.  Such transfers constitute a provision of services by U.S. banks to both the sender and recipient of the funds, and longstanding U.S. law prohibits banks from providing such services to North Korean parties.  Payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution in connection with the March 2018 shipment of coal on board the Wise Honest. 

The Wise Honest is currently in the custody of the United States, having previously been seized pursuant to a warrant issued in the Southern District of New York.

Mr. Berman and Mr. Demers praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s Money Laundering and Asset Recovery Section’s Program Operations Unit and Office of International Affairs, the United States Coast Guard, and the Department of State for their assistance.

U.S. Attorney Announces Charges Against Multimillion-Dollar Business Email Compromise Syndicate

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment against four defendants charged with conducting a wide-ranging business email compromise fraud scheme.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, these four men and others engaged in a profitable charade, posing as legitimate business counterparties to their victims, whom they deceived into sending them millions of dollars.  Now, thanks to the FBI, the defendants are no longer in a position to defraud anyone.”

FBI Assistant Director William F. Sweeney Jr. said:  “The subjects in this alleged scheme made it look so realistic that they were able to maintain it for several years, stealing millions of dollars from the victims.  This type of insidious fraud and cybercrime can do major harm to our financial system and the agency victims.  Our job each day in the New York FBI is to mitigate the damage and assist agencies and businesses in thwarting the threat these criminals pose.”

As alleged in the Indictment unsealed yesterday in Manhattan federal court[1]:

During the relevant time period, CYRIL ASHU, a/k/a “Akem Maleke,” a/k/a “Zabi Malik,” a/k/a “Bill Zambia Morgan,” a/k/a “Anibal Vasquez Roblero,” a/k/a “Baker Lee Walter,” IFEANYI EKE, a/k/a “Luthur Mulbah Doley,” JOSHUA IKEJIMBA, a/k/a “Johnson Ifeanyi Gbono,” a/k/a “Alfred Henshaw,” a/k/a “Peterson Kamara Lawson,” a/k/a “Ganiru Paul Thompson,” and CHINEDU IRONUAH, a/k/a “John Akuba Annan,” a/k/a “Kenneth Kwame Emerson,” a/k/a “Andrew Kamsi Mong,” a/k/a “Emmanuel Mong,” a/k/a “George Wallace,” a/k/a “George Weah,” a/k/a “Frederick Werner,” the defendants, and others known and unknown, engaged in a fraudulent business email compromise (“BEC”) scheme designed to deceive various victims, including an intergovernmental organization headquartered in New York City, into diverting commercial payments from their intended beneficiaries to bank accounts controlled by the defendants and their co-conspirators.

The defendants executed this fraudulent scheme by, among other things, obtaining fraudulent identification documents in false names, registering and incorporating shell companies, and opening fake bank accounts at various banks throughout the United States.  Victims were successfully tricked into wiring funds in accordance with fraudulent wiring instructions sent from fake email accounts, which were designed to resemble email accounts for individuals and companies with whom those victims had business relationships.  The defendants defrauded numerous victims of millions of dollars during the period from 2016 through July 2018.

CYRIL ASHU and IFEANYI EKE were arrested yesterday morning in Atlanta, Georgia and presented in the Northern District of Georgia.  JOSHUA IKEJIMBA was arrested yesterday afternoon in Houston, Texas, and will be presented the Southern District of Texas.  One defendant, CHINEDU IRONUAH, remains at large.

CYRIL ASHU, 34, of Georgia, IFEANYI EKE, 32, of Georgia, JOSHUA IKEJIMBA, 24, of Texas, and CHINEDU IRONUAH, 32, of Texas, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of wire fraud, in violation of 18 U.S.C. § 1343.  The charges of conspiracy to commit wire fraud and wire fraud each carry a maximum penalty of 20 years in prison.  CYRIL ASHU is also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.   

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the FBI, as well as the assistance of prosecutors in the Northern District of Georgia, the Southern District of Texas, and the Western District of Texas. 

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. 

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

Attorney General James Announces Twelve Convictions In Multi-Million Dollar Medicaid Medical Mill Case

Two Doctors and Two Corporate Presidents Among Those Convicted of Roles in Stealing Millions of Dollars From Medicaid; Will Pay $27.9 Million Dollars in Restitution

  Attorney General Letitia James announced the convictions of Tea Kaganovich, 47, and Ramazi Mitaishvili, 58, both from Brooklyn, and Bernard Bentley, M.D., 61, of East Hampton, for their roles in fraudulently billing Medicaid for more than $8 million for fraudulent diagnostic testing services. Kaganovich and Mitaishvili were both convicted on charges of Grand Larceny in the First Degree; and Bentley, M.D., convicted on charges of Grand Larceny in the First and Third Degrees. Sophisticated Imaging, Inc., and East Coast Diagnostic, Inc., corporations owned by Kaganovich; East West Management, Inc., a corporation owned by Mitaishvili; and Bentley Medical PLLC, a company owned by Bentley, also each pled guilty to Grand Larceny in the First Degree. The Court is expected to sentence Kaganovich and Mitaishvili to one and a half to four and a half years in state prison, which they will serve concurrent to a federal sentence that they will receive at a later date in a similar healthcare fraud scheme prosecuted in federal court. Bentley’s sentence will be determined by the Court at a later date. 

“These individuals preyed on unsuspecting patients and stole government funds to line their own pockets,” said Attorney General Letitia James. “New Yorkers put their trust and health in the hands of medical professionals and providers and we expect them to fulfill their basic duty to provide real and sound care. Medicaid fraud is a serious crime and we will take action against anyone who seeks to cheat our system or our patients.” 

In addition to his guilty plea, Bentley entered into a civil settlement agreement whereby he agreed to pay restitution totaling $2.5 million dollars, money derived from the sale of his home in the Hamptons, two Tesla cars, and the contents of six bank and brokerage accounts. Kaganovich and Mitaishvili have separately agreed to pay $18 million dollars in restitution. All of the restitution, totaling $27.9 million dollars, is payable to the New York State Medicaid program.   

As part of their respective guilty pleas, Kaganovich, Mitaishvili and Bentley admitted that they individually and through their corporations engaged in a systematic scheme to subject Medicaid recipients to a battery of diagnostic tests that were neither medically necessary and were fraudulently referred. Kaganovich and Mitaishvili with the assistance of Bentley then submitted and caused to be submitted claims for reimbursement to the Medicaid program, including to Medicaid-funded managed care organizations (“MCOs”), based on fraudulent referrals for services that were either not provided or not medically necessary.  

Kaganovich, Mitaishvili, and Bentley’s convictions are the culmination of a multi-year investigation into the fraudulent activity of a medical mill, Multi-Specialty. Medical mills are purported medical clinics that solicit Medicaid recipients with promises of a nominal cash kickback, usually ranging between $20 and $50, in exchange for the recipient agreeing to submit to a medical evaluation and testing. Soliciting Medicaid recipients by offering to pay them to accept medical services paid by Medicaid is unlawful under state and federal law.   

The investigation leading to these convictions was conducted by the Attorney General’s Medicaid Fraud Control Unit (“MFCU”) and involved undercover operations and the execution of search warrants at Multi-Specialty locations in Manhattan and in the Bronx. The investigation revealed that Kaganovich and Mitaishvili conspired with others to create a scheme whereby street recruiters solicited Medicaid recipients to Multi- Specialty for treatment and testing and then upon arrival, required those recipients to submit to a series of unnecessary diagnostic procedures conducted by technicians working for Kaganovich and Mitaishvili. In turn, Kaganovich and Mitaishvili, through a complicit physician, Bentley, billed Medicaid and Medicaid-funded MCOs for those unnecessary services and then split the criminal proceeds further to a revenue sharing plan.   

To carry out the scheme, in addition to street recruiters, Azu Ajudua, formerly a licensed physician, acted as the owner of Multi-Specialty and signed referral forms for the unnecessary diagnostic services fraudulently performed by Kaganovich’s and Mitaishvili’s technicians. Ajudua and his corporation, AAA Medical P.C., previously pled guilty to Grand Larceny in the Second and Third Degrees for his involvement in the scheme. As part of his plea, Ajudua admitted that he signed referral forms without seeing patients and that he signed blank referral forms. Ajudua’s ultimate sentence will be determined by the court at a later date. 

An unlicensed “physician” Zheng Dong, who worked at one of the Multi-Specialty clinics, provided a façade of legitimacy. Dong previously pled guilty to Unauthorized Practice of a Profession, a felony. In pleading guilty, Dong admitted that he forwarded Ajudua’s previously signed blank referral forms to the diagnostic technicians employed by Kaganovich and Mitaishvili. To maximize billing, Ajudua allowed the unlicensed “doctors” including Dong to use his name and medical license to refer patients, including MFCU’s undercover investigators, for diagnostic testing from whichever technician was present at Multi-Specialty that day without regard to whether the ordered testing was medically necessary. Accepted medical practice requires that supplemental diagnostic testing only be rendered upon the order of a referring provider and that the referring provider have a legitimate medical need to order such testing. 

The investigation revealed that between January 1, 2014 and October 31, 2017, Bentley received more than $16 million dollars in reimbursement from Medicaid and HealthFirst, a Medicaid-funded MCO, of which more than $5.5 million dollars was for unnecessary diagnostic services ordered by Ajudua. Bentley, through Bentley Medical PLLC, transferred more than $13 million dollars of this money to Kaganovich and Mitaishvili.  In turn, Kaganovich and Mitaishvili, through their corporations, paid illegal kickbacks to cause the referral of patients for diagnostic testing regardless of medical need to Kaganovich and Mitaishvili’s corporations.   

Kaganovich, Mitaishvili, Bentley, Ajudua, and the companies owned by those individuals, all pled guilty in New York County Supreme Court. The sentencing for Kaganovich and Mitaishvili is scheduled for July 26, 2019. Dong and Johanna Ubiera, another employee of Multi-Specialty, pled guilty in New York City Criminal Court, Bronx County. Kaganovich and Mitaishvili also recently pled guilty in the US District Court for the Eastern District of New York court for various federal crimes related to a similar healthcare fraud scheme.   

In pleading guilty, both Bentley and Ajudua agreed to surrender their medical licenses.  Everyone convicted agreed to be excluded from further participation in the State Medicaid and federal Medicare programs as a provider of any type of goods or services.  

The Attorney General would like to thank the New York State Office of the Medicaid Inspector General (“OMIG”), the U.S. Department of Justice Medicare Strike Force, which operates from the US Attorney’s Office, Eastern District of New York; the United States Department of Health and Human Services, Office of the Inspector General (“HHS OIG”); the New York City Human Resources Administration, Medicaid Provider Investigations and Audit Unit, and HealthFirst for their assistance and cooperation in this investigation.  

New York State Senate Democratic Majority Stands Up To President Trump

  The Senate Democratic Majority passed legislation today that will have a major impact, nationally and in New York State, by holding the President Donald Trump accountable. The bills passed by the Senate allow New York State to release any state tax returns requested by Congress and authorize state authorities to prosecute someone even if they receive a Presidential reprieve, pardon or other form of clemency. 

”This President and his administration have repeatedly shown a true hostility to  the rule of law and Presidential customs,” Senate Majority Leader Andrea Stewart-Cousins said. ”No person is above the law and New Yorkers, as well as all Americans, deserve transparency from their elected officials at every level of government. I commend Senators Hoylman and Kaminsky for their leadership on these important bills.” 

The legislation advanced by the Senate Majority includes:

• Trump Taxes: This bill, S.5072-A, sponsored by Senator Brad Hoylman, will allow New York State officials to release state tax returns in cooperation with Congressional investigations by authorizing the Commissioner of the Department of Taxation and Finance to furnish state tax returns upon written request of the chairperson of the U.S. House Ways & Means Committee, the U.S. Senate Finance Committee, or the Joint Committee on Taxation.
• Double Jeopardy: This bill, S.4572, sponsored by Senator Todd Kaminsky, will allow New York state prosecutors to bring charges against people who have received presidential pardons, or other forms of clemency, in certain circumstances. This bill only applies in situations where the President had a conflict of interest in the case; for example, where the person pardoned is related to the President, or had previously worked for the President. 

Bill Sponsor, Senator Brad Hoylman, said, “Today, the New York State Senate voted to do its part to assist Congress in fulfilling its oversight responsibilities by passing the TRUST Act, allowing the State Tax Department to cooperate with congressional committees requesting New York State tax returns. I am grateful to Senate Majority Leader Andrea Stewart-Cousins, Senate Revenue and Budget Chair Brian Benjamin, my colleagues in the Senate, and to my partner in the Assembly, David Buchwald. We must ensure that Congress can’t be blocked in their attempts to hold even the highest elected officials in the land accountable to the American people.”

Bill Sponsor, Senator Todd Kaminsky, said, “Special Counsel Robert Mueller’s report provided disturbing, new evidence of the President’s plan to improperly use the pardon power to help his associates and undermine the rule of law. As former federal corruption prosecutor, I am pleased the Senate will take up my legislation to close the Double Jeopardy loophole and crack down on corruption. No one — not even the President and his inner circle — is above the law, and I urge the Assembly to pass this vital piece of legislation in an expeditious fashion — justice demands no less.”

Senate Deputy Leader Michael Gianaris said, “No person is above the law, including the President of the United States. I am proud to support these proposals to send a message that New York insists on accountability and transparency no matter how powerful one is.” 

Senator Alessandra Biaggi said, “Right now, our democracy and a government that is actually of, by and for the people is at risk. The only way to preserve our precious ideals is to uphold the rule of law and hold everyone accountable for their actions.”

MAYOR DE BLASIO UNVEILS NYC CARE CARD, DETAILS PROGRESS TOWARD LAUNCH OF GUARANTEED HEALTH CARE

NYC Care to launch in the Bronx on August 1

  Mayor Bill de Blasio unveiled the NYC Care card, the key to quality and affordable health care for hundreds of thousands of New Yorkers who cannot afford or are ineligible for insurance. When NYC Care launches in the Bronx on August 1, residents will be able to use their NYC Care Card to receive their own doctor, get preventative screenings and tests, and connect to a 24/7 service to help make appointments.

An estimated 300,000 New Yorkers are currently ineligible for health insurance, including people who can’t afford insurance and undocumented immigrants, and will be able to enroll in NYC Care. The $100 million program – one of two major components of the City’s Guaranteed Care commitment – will be fully implemented across all five boroughs by the end of 2020, making it as easy as possible for New Yorkers to get the health care they need.

     Mayor de Blasio with an NYC Care Card in his hand

“In New York City, we know health care is a human right, which is why we're making that right a reality,” said Mayor de Blasio. “We’re on track to guarantee health care for every single New Yorker. Access to quality and affordable health care is one of the biggest burdens working people face. Now they won’t face it alone.”

“Today’s announcement affirms New York City’s commitment to ensure that every New Yorker has access to the health care they need – which of course includes mental health,” said First Lady Chirlane McCray. “When we fail to invest in wellness and prevention, we pay the price in dollars spent and lives damaged. New York is pioneering a better, more inclusive approach and will continue to lead the nation in providing behavioral health services to every person in our city.”

Mayor de Blasio announced a series of milestones toward implementing Guaranteed Care in NYC:

·         New NYC Care Card, which will provide each member with a dedicated doctor, access to a 24/7 customer service line to make appointments, and clear copays that are affordable to each individual member.

·         New NYC Health + Hospitals doctors hired in the Bronx to serve approximately 10,000 patients expected to enroll in NYC Care in the first six months.

·         New Executive Director for NYC Care, Marielle Kress, who was instrumental in the Affordable Care Act’s (ACA) successful expansion of Medicaid in states across the country.

·         Access to 24/7 pharmacy services in the Bronx, launching on August 1, that will provide NYC Care members with easy access to affordable medication.

·         GetGoveredNYC, the City’s health insurance outreach and enrollment initiative, has enrolled more than 19,000 New Yorkers into coverage in 2019, a 19 percent increase from the same time period last year.

“When I was appointed, one of my first tasks was to financially stabilize and transform NYC Health + Hospitals into a health care delivery system built for the 21st century landscape,” said Dr. Herminia Palacio, Deputy Mayor for Health and Human Services. “It’s upon the achievements of the last three years that we are now poised to lead the charge and make the Mayor’s vision of Guaranteed Care a reality for all New Yorkers. We are excited about the progress made towards preparing for the launch of NYC Care, and look forward to providing New Yorkers without access to health insurance a key the City’s health care.”

“The Mayor’s Guaranteed Care commitment is a significant investment in the health and future of New York City – there is nothing else like it,” said Dr. Mitchell Katz, President and CEO of NYC Health + Hospitals. “For NYC Care, the health system is investing in new primary care doctors in the Bronx, launching a new customer service system, and preparing for our new members and patients at our clinics and hospitals. Every New Yorker has the right to health care and now they will.”

In January 2019, Mayor de Blasio announced the launch of the largest, most comprehensive initiative in the nation to guarantee health care for every New Yorker. When fully implemented, New York City will ensure the estimated 600,000 New Yorkers currently without insurance are connected to health care – including NYC’s Public Option, MetroPlus – or have direct access to the nation’s largest public health care system through the NYC Care program.

NEW NYC CARE EXECUTIVE DIRECTOR AND NYC CARE CARD

Mayor de Blasio announced the appointment of Marielle Kress as Executive Director of NYC Care. A native New Yorker, Kress brings more than a decade of experience in policy management, operations and advocacy related to complex health care programs. Previously, she played a critical role in the successful expansion and modernization of the Medicaid program under the Obama Administration. As the Executive Director, Kress will be responsible for the strategic rollout, operations and implementation of NYC Care. She started in this role on May 6.

“For far too many people, health care feels like a luxury and a privilege rather than a basic human right,” said Marielle Kress, Executive Director of NYC Care. “I am excited to be joining the extraordinary team at NYC Health + Hospitals and I am especially honored to be leading the NYC Care program that will guarantee every New Yorker access to the health care they deserve.”

“I relied on Marielle’s judgment and expertise while overseeing the implementation of complex and historic changes to the Medicaid program,” said Cindy Mann, former Deputy Administrator of the Center for Medicare & Medicaid Services and Director of the Center for Medicaid and CHIP services within CMS during the Obama Administration. “Marielle brings energy, passion, and deep dedication to serving the most vulnerable members of our society. I’m confident she will provide the leadership needed to ensure that health care is a basic right for all New Yorkers.”

NYC Health + Hospitals is actively preparing for a successful launch of NYC Care in the Bronx this summer. NYC Health + Hospitals will hire seven doctors to serve the estimated 10,000 patients expected to enroll in NYC Care in the first six months. Since the program guarantees a dedicated primary care provider for all members, the new hires will help manage the expected increase in demand for services.

Additionally, the Mayor revealed the design for the NYC Care card. The blue and orange card features the city skyline as part of the NYC Care logo and the tagline “Your Key to the City’s Health Care.” All members will receive this card, which will be the key to providing members with valuable information about their dedicated doctor, a 24/7 customer assistance line where they can access an operator to help answer questions, and clear information about copays that are affordable to individual members. NYC Care’s logo “Your Key to The City’s Health Care” is a joint effort between City Hall and Area 23, an FCB Health Network company. This is the first project assigned by NYC’s Creative Council, recently formed to advise and provide the city with creative solutions. Susan Credle, FCB’s Global Chief Creative Officer, is a founding member of the council.

HEALTH INSURANCE ENROLLMENT UPDATES

As part of the its mission to ensure every New Yorker has access to quality, affordable health care, the City doubled down on its outreach to connect eligible New Yorkers to health insurance options that fit their needs.

·         GetCoveredNYC

GetCoveredNYC, the City’s health insurance outreach and enrollment program, has enrolled 19,942 New Yorkers in health care coverage from January through March 2019, more than half of the Mayor’s stated goal of enrolling 31,000 New Yorkers by July 2019. Since the Mayor signed Executive Order 40Connecting New Yorkers to Health Insurance, GetCoveredNYC has collaborated with 34 City agencies on outreach and enrollment opportunities that make it easier for New Yorkers to determine their eligibility for coverage, especially outside of the annual Open Enrollment Period, and sign up for insurance.

Since its creation in 2016, GetCoveredNYC – which is overseen by the Mayor’s Public Engagement Unit – has now helped more than 160,000 New Yorkers enroll in the New York State’s ACA health insurance marketplace. About 2.5 million New York City residents are now insured through the state’s insurance marketplace as of January 2019, according to the New York State Department of Health’s county-level data on health insurance enrollment.

·        MetroPlus, the City’s Public Option

MetroPlus today also launched its latest public awareness campaign, “Health Care is Your Right. Not a Privilege.” The campaign will be seen through the end of June on subway cars, bus shelters near NYC/Health + Hospitals locations, ethnic and community-based print media, and featured at other venues across New York City, including Brooklyn Cyclones games. The ads will be available in eight languages, including English, Spanish, Chinese, Bengali, Haitian Creole, Polish and Russian.

MetroPlus provides affordable health insurance that connects insurance-eligible New Yorkers to a network of providers that includes NYC Health + Hospitals’ 70 patient care sites, including 11 hospitals. MetroPlus serves as an affordable, quality option for people on Medicaid, Medicare, and those purchasing insurance on the exchange.

NYC CARE UPDATES

·         Eligibility Determination: NYC Care will be open to anyone who has lived in New York City for six months or longer and does not have an affordable insurance option or who is ineligible for insurance.

·         New 24/7 customer assistance operation: Starting August 1, NYC Care members will have access to a 24/7 customer assistance line where they ask questions about NYC Care and speak to an on-call clinician for all of their needs, including prescription refills. Members will also be able to schedule appointments at convenient times and will have assistance to help navigate members through the NYC Health + Hospitals system.

·         Expanded pharmacy hours: NYC Care patients will have 24/7 access to medications in the Bronx starting Aug. 1. This includes expanded hours at all NYC Health + Hospital pharmacy locations in (NYC Health + Hospitals/Jacobi, NYC Health + Hospitals/Lincoln, and NYC Health + Hospitals/North Central Bronx). Until now, uninsured patients have been limited to NYC Health + Hospital pharmacy access during business hours, which makes it challenging for patients to get their medications if they are at work.

·         Outreach with Community-based Organizations: To reach eligible New Yorkers, NYC Health + Hospitals is partnering with the Mayor’s Office of Immigrant Affairs and the Mayor’s Fund to Advance New York City. The health system will invest $450,000 to partner with community-based organizations in the Bronx to reach New Yorkers eligible to participate in NYC Care. This money will fund up to 15 full-time outreach workers, or the part time equivalent, who will conduct direct, grass-roots outreach to targeted population in a culturally appropriate and sensitive manner and make appointments with NYC Care enrollment staff.

“In January Mayor de Blasio made a huge commitment to New Yorkers to guarantee affordable and direct access to healthcare right here in our City. Today we are so happy to stand alongside our Mayor and his administration as we make meaningful progress and fulfill this wonderful promise. We welcome the appointment of the Director of NYC Care and the new NYC Care Card will go a long way not only for its practical purpose but as a symbol that all New Yorkers are welcome and valued in our City. It will truly be New Yorkers' key to health and wellness. We look forward to working with the administration to get the word out about this initiative which has the potential to literally save lives,” said Theo J. Oshiro, Deputy Director of Make the Road New York. 

"We are optimistic about the progress to make timely, high-quality care available to all Bronx residents this summer," said Steven Choi, Executive Director of the New York Immigration Coalition. "As long as health insurance discrimination against immigrant communities persists in New York State, programs like NYC Care represent a critical improvement in helping uninsured New Yorkers get more patient-centered care. We look forward to continuing to work with Health + Hospitals, city officials, and trusted community-based organizations to get NYC Care off on the right foot." 

“The significant increase in enrollments this year in light of the federal government’s efforts to sabotage the ACA is a testament to GetCoveredNYC’s innovative outreach strategies and our partner agencies’ work to reach uninsured New Yorkers,” said Director of the Mayor’s Public Engagement Unit Omar Khan. “All New Yorkers, regardless of income or immigration status, should have access to quality health care, and we look forward to partnering with NYC Care to make that a reality.”

“Health care is a right for all, not a privilege for only those who can afford care,” said Health Commissioner Dr. Oxiris Barbot. “The City guarantees care for all New Yorkers, regardless of your family's income or immigration status. Reliable access to affordable and quality health care services is a must for everyone to maintain optimal health.”

Above - First Lady Charlene McCray speaks about how the new NYC card will help people get the out reach that they need. 

Below - Marielle Kress, Executive Director of NYC Care.