|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Friday, June 7, 2024
Bronx Chamber of Commerce - Bronx Business News You Can Use
Five Individuals Arrested for Defrauding Medicare of Over $15M Through Sham Hospices and Money Laundering
Five individuals were arrested yesterday in Los Angeles on criminal charges related to their roles in a years-long scheme to defraud Medicare of more than $15 million through sham hospice companies and then to launder the fraud proceeds.
According to an indictment unsealed yesterday, three of the defendants—Petros Fichidzhyan, 43, of Granada Hills, California, Juan Carlos Esparza, 32, of Valley Village, California, and Karpis Srapyan, 34, of Van Nuys, California—allegedly operated a series of sham hospice companies that were purportedly owned by foreign nationals but were in fact owned by the three defendants. The defendants allegedly used the foreign nationals’ identifying information to open bank accounts, to sign property leases, and, by Fichidzhyan, to make phone calls to Medicare, and submitted false and fraudulent claims to Medicare for hospice services. In submitting the false claims, the defendants misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. In some instances, the defendants falsely claimed that the same beneficiary received services from multiple sham hospices.
Fichidzhyan, Esparza, and Srapyan, together with defendants Susanna Harutyunyan, 38, and Mihran Panosyan, 45, both of Winnetka, California, then allegedly laundered the proceeds fraudulently obtained from Medicare. The defendants are alleged to have spent the money on real estate and vehicles, among other things.
Fichidzhyan, Esparza, and Srapyan are charged with conspiracy to commit health care fraud and aggravated identity theft. Fichidzhyan and Esparza are also charged with health care fraud. All of the defendants are charged with conspiracy to launder money and money laundering. Fichidzhyan is further charged with making false statements. If convicted, all five defendants face a maximum penalty of at least 40 years in prison. Fichidzhyan, Esparza, and Srapyan face an additional mandatory minimum of two years in prison on the aggravated identity theft count.
The charges announced today are the most recent in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting Assistant Director in Charge Krysti E. Hawkins of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Attorney General James Sues Cryptocurrency Companies NovaTechFx and AWS Mining for Defrauding Investors of More Than $1 Billion
NovaTechFx and AWS Mining Promoted Illegal Pyramid Schemes and Targeted Haitian Communities with False Promises of High ReturnsMore Than 11,000 New Yorkers Lost Tens of Millions to the Fraudulent Crypto Schemes
New York Attorney General Letitia James sued cryptocurrency trading company NovaTechFx (NovaTech), its founders Cynthia and Eddy Petion, and cryptocurrency mining company AWS Mining Pty Ltd. (AWS Mining), for engaging in illegal pyramid schemes that defrauded hundreds of thousands of investors, including over 11,000 New Yorkers, of over a billion dollars’ worth of cryptocurrency. The lawsuit alleges that the companies targeted immigrant communities, particularly Haitian New Yorkers, in prayer groups and through social media and WhatsApp group chats with fraudulent promises of high returns on investments, but never actually made the promised profits. An investigation by the Office of the Attorney General (OAG) found that from 2019 to 2023, investors deposited over one billion dollars’ worth of cryptocurrency in NovaTech but only a fraction, less than $26 million, was actually traded on NovaTech’s cryptocurrency trading platform. Attorney General James seeks to ban AWS Mining, NovaTech, and its founders from doing business in New York and to secure disgorgement and damages.“Thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie,” said Attorney General James. “These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings. We are seeing the real dangers of unregulated cryptocurrency platforms with schemes like these, but New Yorkers can rest assured that we will use the tools at our disposal to crack down on crypto fraudsters."
More than 11,000 New Yorkers from New York City, Westchester, Long Island, and Rockland and Orange counties invested in NovaTech and AWS Mining and lost tens of millions of dollars. The lawsuit alleges that AWS Mining was a fraudulent scheme that claimed to generate high returns for investors by mining cryptocurrency, the process by which specialized computers verify transactions in cryptocurrency and generate new cryptocurrency. AWS Mining and its promoters, Cynthia and Eddy Petion, James Corbett, Martin Zizi, and Frantz Ciceron, promised investors 15 to 20 percent monthly returns, 200 percent returns on investments within 15 months, and bonuses for recruiting new investors. However, the company did not generate enough returns to pay the promised monthly profits and recruitment bonuses and eventually collapsed in 2019, causing millions of dollars in losses to investors.
After the collapse of AWS Mining, Cynthia and Eddy Petion started their own cryptocurrency company, NovaTech, and relied on recruiting new investors with promises of high returns and generous recruitment bonuses. They targeted minority communities, Haitians in particular, in prayer groups and WhatsApp group chats with advertisements in Creole, and religious messages that appealed to their faith. They falsely marketed NovaTech as a registered hedge fund broker, misrepresented that NovaTech was licensed to trade cryptocurrency in the U.S., advertised high profits from trading of approximately two to four percent per week, promoted recruitment bonuses, and promised that investors could withdraw their funds and profits at any time.
From August 2019 through April 2023, investors deposited over one billion dollars’ worth of cryptocurrency with NovaTech. However, only less than $26 million was ever traded on NovaTech’s trading platform. The lawsuit alleges that throughout the entirety of the scheme, regardless of market conditions, NovaTech announced that it paid investors weekly trading profits. However, the weekly profits were made up and the payments came from other investors’ money. NovaTech collapsed in May 2023, and tens of thousands of investors were unable to withdraw their cryptocurrency.
Through her action, Attorney General James seeks to stop AWS Mining, NovaTech, and its founders and promoters from engaging in any business related to securities or commodities in New York. Attorney General James is also seeking disgorgement and damages.
Attorney General James has been a nationwide leader in the effort to protect investors and rein in the cryptocurrency industry. Last month, Attorney General James secured $2 billion for defrauded victims from the cryptocurrency company Genesis Global Capital. In December 2023, Attorney General James secured more than $22 million from KuCoin, one of the largest cryptocurrency trading platforms, for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange. In May 2023, Attorney General James secured $4.3 million from Coin Cafe for failing to register as a commodity broker-dealer and defrauding investors. In January 2023, Attorney General James and a multistate coalition recovered $24 million from the cryptocurrency platform Nexo for operating illegally. Attorney General James also sued the former CEO of Celsius for defrauding investors and concealing the company’s dire financial condition.
“Thousands of New Yorkers were falsely promised better lives if they simply trusted NovaTech and AWS Mining with their money, but it was all a lie,” said Attorney General James. “These cryptocurrency companies targeted immigrant and religious communities with promises of financial freedom but instead stole their money and drained their life savings. We are seeing the real dangers of unregulated cryptocurrency platforms with schemes like these, but New Yorkers can rest assured that we will use the tools at our disposal to crack down on crypto fraudsters."
More than 11,000 New Yorkers from New York City, Westchester, Long Island, and Rockland and Orange counties invested in NovaTech and AWS Mining and lost tens of millions of dollars. The lawsuit alleges that AWS Mining was a fraudulent scheme that claimed to generate high returns for investors by mining cryptocurrency, the process by which specialized computers verify transactions in cryptocurrency and generate new cryptocurrency. AWS Mining and its promoters, Cynthia and Eddy Petion, James Corbett, Martin Zizi, and Frantz Ciceron, promised investors 15 to 20 percent monthly returns, 200 percent returns on investments within 15 months, and bonuses for recruiting new investors. However, the company did not generate enough returns to pay the promised monthly profits and recruitment bonuses and eventually collapsed in 2019, causing millions of dollars in losses to investors.
After the collapse of AWS Mining, Cynthia and Eddy Petion started their own cryptocurrency company, NovaTech, and relied on recruiting new investors with promises of high returns and generous recruitment bonuses. They targeted minority communities, Haitians in particular, in prayer groups and WhatsApp group chats with advertisements in Creole, and religious messages that appealed to their faith. They falsely marketed NovaTech as a registered hedge fund broker, misrepresented that NovaTech was licensed to trade cryptocurrency in the U.S., advertised high profits from trading of approximately two to four percent per week, promoted recruitment bonuses, and promised that investors could withdraw their funds and profits at any time.
From August 2019 through April 2023, investors deposited over one billion dollars’ worth of cryptocurrency with NovaTech. However, only less than $26 million was ever traded on NovaTech’s trading platform. The lawsuit alleges that throughout the entirety of the scheme, regardless of market conditions, NovaTech announced that it paid investors weekly trading profits. However, the weekly profits were made up and the payments came from other investors’ money. NovaTech collapsed in May 2023, and tens of thousands of investors were unable to withdraw their cryptocurrency.
Through her action, Attorney General James seeks to stop AWS Mining, NovaTech, and its founders and promoters from engaging in any business related to securities or commodities in New York. Attorney General James is also seeking disgorgement and damages.
Attorney General James has been a nationwide leader in the effort to protect investors and rein in the cryptocurrency industry. Last month, Attorney General James secured $2 billion for defrauded victims from the cryptocurrency company Genesis Global Capital. In December 2023, Attorney General James secured more than $22 million from KuCoin, one of the largest cryptocurrency trading platforms, for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange. In May 2023, Attorney General James secured $4.3 million from Coin Cafe for failing to register as a commodity broker-dealer and defrauding investors. In January 2023, Attorney General James and a multistate coalition recovered $24 million from the cryptocurrency platform Nexo for operating illegally. Attorney General James also sued the former CEO of Celsius for defrauding investors and concealing the company’s dire financial condition.
BRONX MAN SENTENCED TO 20 YEARS IN PRISON FOR RANDOM FATAL SHOOTING COMMITTED WHEN HE WAS TEEN
Defendant Pleaded Guilty to First-Degree Manslaughter
Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 20 years in prison for fatally shooting a man in Mott Haven.
District Attorney Clark said, “The defendant, 17 years old at the time, randomly approached the victim who was just hanging out on the sidewalk and opened fire, killing him. This is another act of senseless violence and a reminder that we must give teenagers other options, so they do not get their hands on a gun.”
District Attorney Clark said the defendant, Shawn Bass, 20, of East 139 Street, was sentenced today by Bronx Supreme Court Justice Gale Roberts to 20 years in prison and five years post-release supervision. The defendant pleaded guilty on November 28, 2023, to firstdegree Manslaughter.
According to the investigation, on August 27, 2021, at approximately 9:26 a.m. near Saint Ann’s Avenue and East 137th Street in the Mott Haven section of the Bronx, the defendant who was 17-years old at the time, approached Demetry Aristud, 29, and opened fire. The defendant shot the victim at least six times, with at least one of those shots hitting him in the chest, leading to his death. The attack was caught on surveillance video and police were able to locate the defendant at 257 Alexander Avenue despite his attempt to evade officers by discarding and changing his clothing.
District Attorney Clark thanked NYPD Detectives Javish Ortiz and Arelis Collazo of Bronx Homicide for their work on the investigation.