Owner of Long Island Ambulette Services Pleads Guilty to Leading Multimillion Dollar Healthcare Fraud Scheme

 

Defendant and Co-Conspirators Stole Approximately $20 Million from Medicaid by Falsely Billing for Ambulette Services to Medical Appointments

In federal court in Central Islip, Adnan Arshad, also known as “Eddie,” pleaded guilty to conspiracy to commit healthcare fraud and conspiracy to commit money laundering in connection with a scheme to steal approximately $20 million from Medicaid.  The proceeding was held before United States Magistrate Judge Anne Y. Shields.  When sentenced, Arshad faces up to 20 years’ imprisonment, restitution of at least $16 million, and forfeiture of over $19 million, including several real properties and vehicles.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York, (IRS-CI); and Raymond A. Tierney, Suffolk County District Attorney, announced the guilty plea.

“The defendant was the leader of a massive fraud scheme in which he and his co-conspirators bilked Medicaid out of millions of dollars of government and taxpayer funds intended to help the needy and infirm,” stated United States Attorney Nocella.  “With his guilty plea today, the defendant admitted that he abused our health care system for his own enrichment.  Arshad lived large on his illicit profits—buying expensive homes and driving luxury vehicles—but today’s guilty plea demonstrates there is a steep price for his fraudulent scheme.”

Mr. Nocella also thanked the Office of the New York State Comptroller and the Medicaid Fraud Control Unit of the New York State Attorney General's Office for their assistance in the case.

“For self-serving purposes, the defendant in this case egregiously diverted crucial Medicaid funds,” stated HHS-OIG Special Agent in Charge Gruchacz.  “HHS-OIG will continue to work with our law enforcement partners to ensure the integrity of federally funded health care programs which relies, in part, on providers billing only for services they actually provide.”

“While Mr. Arshad should have been transporting medical patients as designed, the only people he took for a ride were the American taxpayers.  Nearly $20 million was misappropriated by Mr. Arshad and his partners, who used his ambulette service as a backdrop for fraud and deceit - exploiting the Medicaid program and pocketing the illicit gains.  With this plea, Mr. Arshad will need to give up his life of extravagance funded by tax dollars to face prison time, which is far less luxurious,” stated IRS-CI New York Special Agent in Charge Chavis.”

“This conviction represents a significant step forward in our ongoing efforts to protect taxpayer-funded healthcare programs from fraudulent schemes," stated District Attorney Tierney.  “Healthcare fraud not only diverts critical resources from those who need them most, but it also undermines public trust in these essential programs.  My office will continue to work with our state and federal partners to investigate and prosecute those who would defraud Medicaid and other public healthcare systems.”

As set forth in court filings and facts presented during the plea hearing, Arshad was the owner of MTK Taxi LLC in Montauk, Long Island, and part owner of All-Star Taxi LLC, in Ronkonkoma, Long Island.  From approximately December 2020 to his arrest in June 2024, Arshad and his co-conspirators paid illegal health care kickbacks to Medicaid beneficiaries for fraudulent ambulette services.  Pursuant to the scheme, the beneficiaries would order medical transportation services specifically from Arshad and his co-conspirators, including for transportation to addiction treatment centers for the beneficiaries’ purportedly necessary methadone treatment.  In reality, Arshad’s businesses generally did not provide the medical transportation services ordered by the Medicaid beneficiaries.  At least two claims were submitted to Medicaid for individuals who were deceased, and some claims were submitted for individuals who were hospitalized or incarcerated.  In total, Arshad and his co-conspirators fraudulently billed Medicaid millions of dollars for these non-existent services throughout the course of the scheme. 

Arshad and his co-conspirators also submitted artificially inflated claims to Medicaid.  Although there were numerous addiction treatment centers on Long Island the beneficiaries could have utilized, Arshad and his co-conspirators instructed them to order rides to addiction treatment centers in New York City and to list false addresses so they could obtain higher reimbursement rates from Medicaid for longer rides.  The transportation companies owned or operated by Arshad and his co-conspirators billed Medicaid over $16 million for trips to three addiction treatment centers in New York City.

Arshad used the illicit proceeds to purchase several additional transport vehicles for use in the scheme and to purchase multimillion-dollar homes and luxury vehicles, including a Ferrari, BMWs, and multiple Mercedes.

Five co-conspirators previously pleaded guilty to their participation in the scheme and are awaiting sentencing.

The government’s case is being prosecuted by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorney Adam Toporovsky and Special Assistant United States Attorney Jennifer Milito of the Suffolk County District Attorney’s Office are in charge of the prosecution, with the assistance of Paralegal Specialist Janelle Robinson.  Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters.

DHS Arrests Christian Cerna-Camacho for Allegedly Punching CBP Officer during L.A. Riots

 

“If you lay a hand on a law enforcement officer, you will be prosecuted to the fullest extent of the law.” - Secretary Noem 

The Department of Homeland Security (DHS) released video footage of the arrest of a Christian Damian Cerna-Camacho, a United States (U.S.). citizen, for allegedly assaulting a federal law enforcement officer during the Los Angeles (LA), California (CA) riots. When officers tried to make the arrest, Cerna-Camacho tried to flee.

“Homeland Security Investigations arrested Christian Damian Cerna-Camacho for punching a federal law enforcement officer,” said Assistant Secretary Tricia McLaughlin. “Our officers are facing a 413% increase in assaults against them as they put their lives on the line to arrest murders, rapists, and gang members. Secretary Noem’s message to the LA rioters is clear: you will not stop us or slow us down. ICE and our federal law enforcement partners will continue to enforce the law. And if you lay a hand on a law enforcement officer, you will be prosecuted to the fullest extent of the law.”

Christian Damian Cerna-Camacho

Watch the arrest footage here.

Additionally, this week, Immigration and Customs Enforcement (ICE) arrested Emiliano Garduno-Galvez—an illegal alien from Mexico—for attempted murder after he threw a Molotov cocktail at law enforcement during the LA riots. 

Additionally, the Federal Bureau of Investigation issued a $50,000 reward for information leading to the arrest of Elpidio Reyna for allegedly throwing rocks and explosives at federal officers.

Elpidio Reyna

If you see Reyna or have any information that could help lead to his arrest, call 1-800-CALL-FBI or visit http://tips.fbi.gov.

Fugitive Physician Sentenced to Prison in Medicare Fraud Scheme

 

A California physician was sentenced in Los Angeles to 54 months in prison for health care fraud arising from her false home health certifications and related fraudulent billings to Medicare. She is a fugitive and was sentenced in absentia.

According to court documents, Lilit Gagikovna Baltaian, 61, of Porter Ranch, was a physician licensed to practice in California and an enrolled Medicare provider. From approximately January 2012 to July 2018, she falsely certified patients to receive home health care from at least four Los Angeles area home health agencies. These certifications were used by the home health agencies to fraudulently bill Medicare. In some instances, Baltaian pre-signed blank, undated physician certification forms knowing that the home health agencies would falsify the forms to make appear that she had seen the Medicare beneficiaries and made clinical findings to support the need for home health care, when she had done neither. Baltaian received cash payments related to these referrals and also separately billed Medicare for signing the fraudulent certifications.

Between January 2012 and July 2018, four home health agencies used Baltaian’s false certifications to submit fraudulent claims to Medicare, resulting in loss to the government estimated at $1,497,159.64.

Baltaian pleaded guilty to one count of health care fraud on Nov. 21, 2024. At sentencing, she was also ordered to pay $1,497,159.64 in restitution.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Bilal A. Essayli for the Central District of California, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI and HHS-OIG are investigating the case.

Trial Attorney Matthew Belz of the Criminal Division’s Fraud Section is 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 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 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.

STATEMENT FROM NYSDEC COMMISSIONER AMANDA LEFTON ON U.S. EPA’S PROPOSED REPEAL OF POWER PLANT EMISSION REGULATIONS

 

The federal government’s latest step to gut effective air pollution limits proven to protect the health, environment, and well-being of communities will have direct and negative impacts on New Yorkers. New York delivered on cuts in mercury emissions and other hazardous pollutants from power plants, which drove the remarkable recovery of lake and river ecosystems statewide. 

However, air pollution does not recognize state borders. The potentially harmful actions other states may take following the repeal of these federal regulations is a real threat to public health. When combined with prior federal rollbacks that will contribute further to extreme heat, flooding, and other climate change impacts, EPA's refusal to evaluate the combined effects of greenhouse gas pollutants will hurt our most vulnerable communities and undercut the significant progress being made by New York and other states.

Governor Hochul Announces Groundbreaking of $29.9 Million Sullivan County Broadband Project to Connect Over 22,000 Homes and Businesses

Municipal Infrastructure Program Investment Will Bring High-Speed Internet to Previously Underserved Rural Communities

Addresses Broadband Access in New York's Most Distressed Mid-Hudson County

Governor Kathy Hochul announced the groundbreaking of a $29.9 million broadband infrastructure project in Sullivan County that will bring high-speed internet access to more than 22,000 homes and businesses across the region's rural and mountainous terrain. The project, funded through New York State's Municipal Infrastructure Program under the ConnectALL initiative, represents the largest single broadband investment in Sullivan County's history and advances the Governor's commitment to ensuring every New Yorker has access to reliable, affordable high-speed internet. The groundbreaking will mark the beginning of construction on 253 miles of fiber optic cable and an expansion on an existing tower that will work in conjunction with Sullivan County's 11 existing towers to deliver broadband service to previously unserved and underserved locations.

“This marks a historic turning point for Sullivan County — we're finally bridging the gap that has held back too many communities for far too long,” Governor Hochul said. “This publicly-owned infrastructure isn't just about faster internet — it's about opening doors to better healthcare, education, and economic opportunities that access to high speed internet brings to the table. No New Yorker should be left behind simply because of where they live, and this project ensures that rural communities have the same access to opportunity as anywhere else in our state.”

Sullivan County faces unique broadband deployment challenges due to its rural and mountainous terrains. Under the innovative public-private partnership model, Sullivan County will own the infrastructure while Archtop Fiber LLC will serve as internet service provider, ensuring competitive pricing and service options for residents and businesses. Construction on the fiber network will begin following the groundbreaking ceremony, with the first connections anticipated within 18 months. The project will be completed in phases, prioritizing areas with the greatest need while ensuring minimal disruption to local communities.

The Sullivan County broadband project is part of Governor Hochul's broader ConnectALL initiative, which has committed over $1 billion to expanding broadband access across New York State as essential infrastructure for economic recovery and long-term prosperity. Funded through the U.S. Department of the Treasury under the American Rescue Plan's Capital Projects Fund, the Municipal Infrastructure Program utilizes a public ownership model that serves the public interest while creating an open-access network for multiple internet service providers, promoting competition and keeping costs affordable for consumers. To date, ConnectALL has awarded over $240 million through the program, funding construction of nearly 2,400 miles of broadband infrastructure that will reach 98,000 locations across New York State. ConnectALL has expanded the program to nearly $300 million and is currently reviewing additional applications. Visit the ConnectALL Projects Dashboard for more information on Municipal Infrastructure Program projects.

Governor Hochul’s ConnectALL Initiative

Governor Hochul has made expanding broadband access a cornerstone of her administration's efforts to create a more equitable New York. Through the ConnectALL initiative, New York State is investing $1 billion to transform the state's digital infrastructure, enhance competition among providers, and ensure that every New Yorker has access to reliable, affordable high-speed internet. For more information on the ConnectALL initiative visit broadband.ny.gov.

 

Statement from New York City Comptroller Lander on eBay, TCGplayer, Communication Workers of America Local 1123 Agreement

 

New York City Comptroller Brad Lander released statement following the announcement of eBay and the TCGunion-CWA’s closing agreement. For over two years, Comptroller Lander—on behalf of the City’s pension systems—has repeatedly called on eBay to address investors’ concerns about its labor relations. Following eBay’s July 2024 announcement of an assessment and a revision of its policy, Comptroller Lander urged eBay to expeditiously reach a collective bargaining agreement. Earlier this month, Comptroller Lander called on eBay to negotiate with TCGunion members in good faith, following the company’s decision to relocate its Syracuse office to a right-to-work state.  

“We commend the TCGunion for its tireless work to win a severance package that improves the livelihoods of its members,” said New York City Comptroller Brad Lander. “As eBay shareholders, we’ve long called on the company to negotiate in good faith with its organized workers. While we commend the closing agreement effort, we remain deeply concerned with eBay’s decision to displace skilled workers and erode trust with its workers, investors, and customers. 

“We will continue to call on eBay to adopt better labor practices that support long-term shareholder value.”  

Attorney General James Sues Trump Administration for Unlawfully Stripping New York of Clean Vehicle Protections

 

Multistate Coalition Challenges EPA's Attempt to Cancel Longstanding Clean Air Act Waivers 

New York Attorney General Letitia James and 10 other attorneys general today filed a lawsuit challenging the Trump administration’s unprecedented and illegal attempt to dismantle clean vehicle standards. With this lawsuit, Attorney General James and the coalition seek to block the Environmental Protection Agency’s (EPA) attempt to rescind three key Clean Air Act waivers that New York relies on to enforce its clean vehicle programs. The attorneys general argue the administration is misusing the Congressional Review Act (CRA), a federal law designed to allow Congress to review agency rules, to revoke EPA waivers previously granted to California. New York then adopted these same standards under federal law, which allows states to follow California’s more protective emission rules. Attorney General James is asking the court to protect these critical waivers, which safeguard public health and combat dangerous pollution.

“Every New Yorker deserves to breathe clean air and live in a healthy environment,” said Attorney General James. “This administration is using a sneaky backdoor to gut clean air standards that have been in place for decades, threatening our ability to fight pollution, protect families from toxic emissions, and build a safer future. We are suing to keep our communities healthy and defend our state’s lifesaving clean air protections.”

In the lawsuit, Attorney General James and the coalition write that when Congress passed the Clean Air Act in 1963, it gave California the unique right to set its own, stricter standards for EPA approval because the state had already been regulating emissions for around a decade. This approval is granted via “preemption waiver,” and once EPA grants California a waiver, New York may adopt California’s standards and does not need a waiver of its own. Since passage of the Clean Air Act, EPA has granted more than 75 of these waivers under both Democratic and Republican administrations. In recent years, EPA granted three waivers allowing standards that are instrumental for New York’s climate goals, including:

• Advanced Clean Cars II regulations, requiring automakers to sell an increasing number of zero-emission vehicles in New York, as they have been for decades;
• Advanced Clean Trucks regulations, which aim to accelerate the widespread adoption of zero-emission vehicles for medium- and heavy-duty trucks, and are critical for New York’s efforts to address climate change and protect public health; and
• Omnibus regulations, which require heavy-duty trucks sold in New York to meet strict standards for oxides of nitrogen emissions, which are major contributors to smog. 

Last month, the administration transmitted these three waivers to Congress as “rules” subject to CRA procedures, even though all three waivers state EPA’s consistent and longstanding position under both Republican and Democratic administrations that waiver decisions are not “rules.” Until now, no administration has ever tried to use the CRA to block state environmental regulations. Both the U.S. Government Accountability Office and the Senate Parliamentarian have confirmed that these types of EPA decisions are not subject to the CRA. Nonetheless, the administration elected to push forward with this effort, and last month, Congress – overriding its own procedural rules – passed resolutions disapproving the waivers. Today, the president signed the resolutions of disapproval into law, officially revoking the waivers.

Attorney General James and the coalition argue the EPA’s decision to transmit the California, and therefore, New York waivers to Congress for disapproval under the CRA is unprecedented and unlawful. The attorneys general assert waiver decisions are not federal “rules,” they are formal judgment orders granting states permission to enforce their own standards, a distinction recognized for decades by both EPA and Congress’ own legal experts under multiple administrations. Attorney General James and the coalition argue that these actions violate several federal laws, including the Clean Air Act, which grants California, and by extension, states like New York, the authority to adopt stricter emission rules than the federal baseline.

Joining Attorney General James in the lawsuit are the attorneys general of California, Colorado, Delaware, Massachusetts, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, and Washington.

USAID Official and Three Corporate Executives Plead Guilty to Decade-Long Bribery Scheme Involving Over $550 Million in Contracts; Two Companies Admit Criminal Liability for Bribery Scheme and Securities Fraud

 

Four men, including a government contracting officer for the United States Agency for International Development (USAID) and three owners and presidents of companies, have pleaded guilty for their roles in a decade-long bribery scheme involving at least 14 prime contracts worth over $550 million in U.S. taxpayer dollars.

• Roderick Watson, 57, of Woodstock, Maryland, who worked as a USAID contracting officer, pleaded guilty to bribery of a public official;
• Walter Barnes, 46, of Potomac, Maryland, the owner and president of PM Consulting Group LLC doing business as Vistant (Vistant), a certified small business under the U.S. Small Business Administration (SBA) 8(a) contracting program, pleaded guilty to conspiracy to commit bribery of a public official and securities fraud;
• Darryl Britt, 64, of Myakka City, Florida, the owner and president of Apprio, Inc. (Apprio), a certified small business under the SBA 8(a) contracting program, pleaded guilty to conspiracy to commit bribery of a public official; and
• Paul Young, 62, of Columbia, Maryland, the president of a subcontractor to Vistant and Apprio, pleaded guilty to conspiracy to commit bribery of a public official.

In addition, Apprio and Vistant, both of which contracted with USAID, have agreed to admit criminal liability and enter into three-year deferred prosecution agreements (DPAs) in connection with criminal informations filed today in the District of Maryland. As part of these resolutions, both Apprio and Vistant admitted to engaging in a conspiracy to commit bribery of a public official and securities fraud. The DPAs entered into with Apprio and Vistant require each company to, among other obligations, provide ongoing cooperation with and disclosures to the Justice Department, implement a compliance and ethics program, and report to Justice Department regarding remediation and implementation of these compliance measures.

“The defendants sought to enrich themselves at the expense of American taxpayers through bribery and fraud,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Their scheme violated the public trust by corrupting the federal government’s procurement process. Anybody who cares about good and effective government should be concerned about the waste, fraud, and abuse in government agencies, including USAID. Those who engage in bribery schemes to exploit the U.S. Small Business Administration’s vital economic programs for small businesses — whether individuals or corporations acting through them — will be held to account.” 

“Watson was entrusted to serve the interests of the American people — not his own — and his criminal actions for his own personal gain undermine the integrity of our public institutions,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “Public trust is a hallmark of our nation’s values, so corruption within a federal government agency is intolerable. This office, along with our law enforcement partners, will continue to pursue and prosecute corruption at every level to ensure accountability and protect public trust.”

“The guilty pleas reflect the FBI’s unwavering commitment to holding accountable all those who abuse the authority and responsibility of public service,” said Assistant Director Joe Perez of the FBI's Criminal Division. “The actions of the defendants in this scheme serve to erode public trust. The FBI is focused on rebuilding this trust and protecting American taxpayers from corruption through investigations such as these.”

“Corruption in government programs will not be tolerated. Watson abused his position of trust for personal gain while federal contractors engaged in a pay-to-play scheme,” said Acting Assistant Inspector General for Investigations Sean Bottary of the USAID Office of Inspector General (USAID-OIG). “USAID-OIG is firmly committed to rooting out fraud and corruption within U.S. foreign assistance programs. Today’s announcement underscores our unwavering focus on exposing criminal activity, including bribery schemes by those entrusted to faithfully award government contracts. We appreciate our longstanding partnership with the Department of Justice in holding accountable those who defraud American taxpayers.”    

“Watson exploited his position at USAID to line his pockets with bribes in exchange for more than $550 million in contracts. While he helped three company owners and presidents bypass the fair bidding process, he was showered with cash and lavish gifts,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI). “Through its financial crime investigations, IRS-CI works to protect taxpayer dollars and ensure government funds are awarded based on merit — not corruption. In close coordination with our law enforcement partners, IRS-CI helped put an end to their greed and criminal conduct. Now, Watson and his co-conspirators will face justice.”

Overview of Bribery Scheme

According to court documents, beginning in 2013, Watson, while a USAID contracting officer, agreed with Britt to receive bribes in exchange for using Watson’s influence to award contracts to Apprio. As a certified small business under the SBA 8(a) contracting program, which helps socially and economically disadvantaged businesses, Apprio could access lucrative federal contracting opportunities through set-asides and sole-source contracts exclusively available to eligible contractors without a competitive bid process.

Vistant was a subcontractor to Apprio on one of the contracts awarded through Watson’s influence. After Apprio graduated from the SBA 8(a) program and it was no longer eligible to be a prime contractor for new contracts with USAID under this program, the scheme shifted so that Vistant became the prime contractor and Apprio became the subcontractor on USAID contracts awarded through Watson’s influence between 2018 and 2022.

During the scheme, Britt and Barnes paid bribes to Watson that were often concealed by passing them through Young, who was the president of another subcontractor to Apprio and Vistant. Britt and Barnes also regularly funneled bribes to Watson, including cash, laptops, thousands of dollars in tickets to a suite at an NBA game, a country club wedding, downpayments on two residential mortgages, cellular phones, and jobs for relatives. The bribes were also often concealed through electronic bank transfers falsely listing Watson on payroll, incorporated shell companies, and false invoices. Watson is alleged to have received bribes valued at more than approximately $1 million as part of the scheme.

In exchange for the bribe payments, Watson influenced the award of contracts to Apprio and Vistant by manipulating the procurement process at USAID through various means, including recommending their companies to other USAID decisionmakers for non-competitive contract awards, disclosing sensitive procurement information during the competitive bidding process, providing positive performance evaluations to a government agency, and approving decisions on the contracts, such as increased funding and a security clearance.

Apprio and Vistant also agreed to resolve concurrently with the Justice Department in its separate Civil False Claims Act investigations relating to the bribery scheme.

Overview of Vistant Securities Fraud Scheme

According to court documents, in 2022, Barnes and Watson defrauded a licensed small business investment company (SBIC), in furtherance of the bribery scheme, by inducing it into executing a credit agreement with Vistant. Through the credit agreement, Barnes caused Vistant to issue stock warrants that, if exercised, would result in the SBIC having a 40% equity stake in Vistant. The credit agreement also provided for a $14 million loan to Vistant from which Barnes could pay himself a $10 million dividend. Prior to executing the credit agreement, Watson agreed at Barnes’s request to speak with the SBIC about Vistant’s performance as a government contractor on USAID contracts. When speaking with the SBIC, Watson omitted that Barnes had bribed Watson to obtain USAID contracts for years. Watson’s endorsement of Vistant thereafter induced the SBIC to enter into the credit agreement with Barnes.

Overview of Apprio Securities Fraud Scheme

According to court documents, in 2023, Apprio, acting through Britt, engaged in a scheme in which Apprio fraudulently induced a private equity firm, which had an investment pool that was licensed as a SBIC, to purchase from Apprio’s parent company a 20% equity stake in the company for $4 million and simultaneously extend it a $4 million loan secured by shares of Apprio stock. In addition to making false material representations in the stock purchase and loan agreements, Britt intentionally omitted during his negotiations the material fact that he had bribed Watson for years, which was intended to deceive and induce the private equity company into executing the agreements.

Deferred Prosecution Agreements with Apprio and Vistant

The Justice Department reached its resolution with Apprio based on several factors, including Apprio’s credit for clearly accepting responsibility for its criminal conduct, fully cooperating in the investigation and engaging in timely remedial measures. Based on these factors, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable Guidelines fine range pursuant to the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). According to court documents, Apprio agreed that the appropriate criminal penalty based on the law and facts in its case is $51,673,185; however, Apprio also met its burden of establishing an inability to pay the criminal penalty sought. Based on the Justice Department’s independent analysis, it determined that paying a criminal penalty and civil settlement greater than $500,000 would substantially threaten the continued viability of Apprio. Accordingly, the Justice Department determined that the appropriate resolution of this case is a DPA and a payment of $500,000 in a civil settlement.

Similarly, the Justice Department reached its resolution with Vistant based on a number of factors, including Vistant’s credit for clearly accepting responsibility for its criminal conduct and cooperating with the investigation. Although Vistant’s cooperation was initially delayed and limited, Vistant began to fully cooperate thereafter. Vistant also received credit for engaging in timely remedial measures. Based on these factors, the penalty calculated under the Guidelines reflects a 5% reduction off the bottom of the applicable Guidelines fine range pursuant to the CEP. Vistant agreed that the appropriate criminal penalty based on the law and facts in its case is $86,407,740; however, Vistant also met its burden of establishing an inability to pay the criminal penalty sought. Based on the Justice Department’s independent analysis, it determined that paying a criminal penalty and civil settlement greater than $100,000 would substantially threaten the continued viability of Vistant. Accordingly, the Justice Department determined that the appropriate resolution of this case is a DPA and a payment of $100,000 in a civil settlement.

Watson is scheduled to be sentenced on Oct. 6, and faces a maximum penalty of 15 years in prison. Young is scheduled to be sentenced on Sept. 3 and faces a maximum penalty of five years in prison. Britt is scheduled to be sentenced on July 28 and faces a maximum penalty of five years in prison. Barnes is scheduled to be sentenced on Oct. 14 and faces a maximum penalty of five years in prison.

The FBI, USAID-OIG, and IRS-CI are investigating the cases.