Sunday, May 12, 2019
Safer School Zones
On Mother's Day, Governor Cuomo signs legislation reinstating the New York City speed zone camera program, extending its hours, and expanding the number of authorized school speed zones. Governor Cuomo signs legislation reinstating the New York City speed zone camera program, extending its hours, and expanding the number of authorized school speed zones.
Governor Andrew M. Cuomo today signed legislation (S.4331/A.6449) to reinstate the speed camera program in New York City and expand the number of authorized school speed zones from 140 to 750. The bill also expands the hours of the program to weekdays between 6 a.m. and 10 p.m.
"Something as simple as walking to and from school can be the most dangerous part of the day, especially in this city with this complexity and this density. We have learned it the hard way. We have lost too many people, especially too many young people. We have to do better and we can do better," Governor Cuomo said. "This bill will increase the number from 140 to 750 speed cameras in the city, extend the hours of operation of the speed cameras and will mandate that the city prioritize placement of the cameras by speed and crash data. It's common sense. It works and it is the right thing to do."
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.