Find Corporate Waste

Category: anti-Kickback Statute

  • Brooklyn Adult Day Care Owner Gets 57 Months for $3.2M Medicaid Fraud

    Brooklyn Adult Day Care Owner Gets 57 Months for $3.2M Medicaid Fraud

    Brooklyn adult day care owner Eric Zhu surrendered to federal prison to begin serving 57 months for operating a $3.2 million Medicaid fraud and kickback scheme.

    According to the Department of Justice⁠, Zhu, 29, owned Prime Life Adult Day Care LLC.

    From approximately 2020 through 2025, Prime Life paid Medicaid recipients illegal cash kickbacks to enroll in its social adult day care program. The company then billed Medicaid approximately $3.2 million for services those recipients never received.

    Prosecutors said Medicaid paid the fraudulent claims in full. Zhu used multiple business entities to launder the proceeds and generate cash for the kickbacks. Investigators recovered some of that cash during a search of Prime Life.

    Zhu was ordered to pay nearly $3.2 million in restitution and forfeit another $1.5 million in fraud proceeds.

  • Census Bureau Manager Took $790K in Contract Kickbacks

    Census Bureau Manager Took $790K in Contract Kickbacks

    A former U.S. Census Bureau program manager was sentenced to two years in prison for steering a multimillion-dollar federal contract to a relative’s company in exchange for $790,000 in kickbacks.

    Yolanda Jones of Maryland has agreed to settle allegations she misappropriated federal funds.

    According to the Justice Department⁠, Camille T. Jones, 47, of Upper Marlboro, Maryland, directed an employee-assistance program contract and later modifications toward a prime contractor and YMJ Consulting, a subcontractor owned by her relative, Yolanda M. Jones.

    Prosecutors said Camille Jones tried to disguise the kickbacks through a fabricated service agreement between YMJ Consulting and her mental-health company. The agreement was signed in 2024 but backdated to 2020 before being provided to investigators.

    Jones also admitted sharing confidential Census Bureau procurement information with another government contractor. That contractor hired another relative for a minimal-work position paying $83,000, although Jones allegedly performed most of the work.

    Jones pleaded guilty to conspiracy to commit bribery and honest-services fraud. She must also forfeit the scheme’s proceeds and serve one year of supervised release.

  • Brooklyn Adult Day Care Operators Accused in $38M Medicaid Kickback and False-Billing Scheme

    Brooklyn Adult Day Care Operators Accused in $38M Medicaid Kickback and False-Billing Scheme

    Federal prosecutors have charged eight defendants in an alleged $38 million Medicaid fraud scheme involving two Brooklyn social adult day care centers: APNA Adult Daycare and Ashiana Social Adult Daycare, according to the New York Post⁠.

    The reported indictment alleges that Medicaid recipients were paid cash kickbacks to enroll, recruiters were paid to bring in beneficiaries, and the centers then billed New York Medicaid for services that were not actually provided. Prosecutors also reportedly allege fake sign-in sheets, Pakistan-based billing support, and shell-company transfers labeled as “gifts,” “dividends,” “medicine,” or “laddu.”

    For Find Corporate Waste, the relevance is the public-funds mechanism: Medicaid claims allegedly tied to false attendance, kickback-driven enrollment, and non-rendered services.

    That is the same fraud structure FCW tracks across taxpayer-funded health care programs, including provider eligibility, billing integrity, ownership/control relationships, and public-payment exposure.

    The case also fits a broader enforcement pattern. DOJ previously announced guilty pleas in a $68 million Brooklyn adult day care fraud scheme⁠ and charged two Queens men in an alleged $120 million adult day care and pharmacy fraud scheme⁠. 

  • Arkansas Lab and Owners Pay $30M Over Alleged Kickback-Fueled Testing Scheme

    Arkansas Lab and Owners Pay $30M Over Alleged Kickback-Fueled Testing Scheme

    An Arkansas pathology lab and its owners agreed to pay $30 million to resolve federal allegations that their business model turned physician referrals and add-on testing into a taxpayer-funded billing pipeline.

    The settlement covers Advanced Pathology Solutions PLLC, APS MSO LLC, and current and former owners Kevin Hannah, Donell Burkett, and Daniel Hunter Pledger⁠. According to the Justice Department, APS operated “lean labs” with gastroenterology practices across the country and allegedly provided financial benefits to those practices in exchange for exclusive referrals of pathology specimens to APS’s North Little Rock laboratory.

    Federal prosecutors also alleged APS caused special stains and confirmatory testing to be ordered automatically before a pathologist determined whether the tests were medically necessary.

    In essence, the government alleged extra testing was built into the process first, while medical necessity came second.

    The settlement also resolves claims that APS and CEO Kevin Hannah paid volume-based commissions to Richard Sorgnard⁠ to induce referrals for epidermal nerve fiber density testing. The United States contended the commissions equaled 4% of collections from referred ENFD testing.

    The case originated from three whistleblower lawsuits filed under the False Claims Act⁠. As part of the resolution, APS entered into a five-year Corporate Integrity Agreement with HHS-OIG⁠ requiring compliance reforms, training, auditing, and review of physician referral relationships.

    For Find Corporate Waste⁠, the settlement shows how federal health care fraud can hide inside ordinary-looking referral networks, lab protocols, and billing defaults. When financial incentives shape where specimens go and testing is added before necessity is established, taxpayers are left paying for a system designed around revenue rather than care.

  • Former Intelligence Contractor Pleads Guilty in Kickback Scheme

    Former Intelligence Contractor Pleads Guilty in Kickback Scheme

    A former Intelligence Community contractor pleaded guilty to conspiring to commit offenses against the United States after admitting that he solicited and accepted illegal kickbacks tied to government procurement.

    According to the DOJ⁠, David Duggin, 55, of Orrtanna, Pennsylvania, was a former senior systems engineer and on-site contractor at a U.S. government Intelligence Community agency. Prosecutors said Duggin and co-conspirators used his on-site access to sensitive information to help obtain government contracts for millions of dollars of hardware and software purchased by U.S. government customers.  

    The DOJ said Duggin received at least $510,000 in illegal kickbacks in exchange for influencing the procurement process to favor his co-conspirators. The alleged conspiracy began at least as early as June 2018 and continued through at least April 2024.  

    The case is being investigated by the Defense Criminal Investigative Service and the FBI Baltimore Field Office, with prosecutors from the Antitrust Division and the U.S. Attorney’s Office for the District of Maryland. The DOJ also highlighted the Procurement Collusion Strike Force⁠, which targets bid rigging, price fixing, market allocation, and related fraud affecting government spending.

    For Find Corporate Waste⁠, the case is another reminder that taxpayer-funded procurement fraud often depends on insiders, access, and certification-driven trust. 

  • Ahold Delhaize USA to Pay $40M Over Allegedly Inflated Pharmacy Prices

    Ahold Delhaize USA to Pay $40M Over Allegedly Inflated Pharmacy Prices

    Ahold Delhaize USA Inc.⁠, the parent company behind supermarket pharmacy brands including Giant, Hannaford, Stop & Shop, Food Lion, and others, has agreed to pay $40 million to resolve False Claims Act allegations involving prescription drug pricing.

    According to the DOJ⁠, Ahold Delhaize allegedly reported inflated “usual and customary” prices on claims submitted to Medicare Part D, Medicaid, and TRICARE. Prosecutors said the company operated prescription savings programs that offered discounted prices to enrolled customers, but allegedly failed to report those discounted prices as the pharmacies’ usual and customary prices.

    That distinction matters because usual and customary prices can operate as ceiling prices in federal health care reimbursement formulas. The government alleged that by reporting higher prices, Ahold Delhaize caused federal health care programs to pay more than they should have paid on pharmacy claims.

    Of the $40 million settlement, $32.9 million represents the federal share, with the remainder going to participating states.

    The case began as a whistleblower action filed by Lawrence LaBenne, a Pennsylvania pharmacist at an Ahold Delhaize supermarket.

    He will receive $6,083,587 from the federal recovery.

    The settlement is another example of how pricing representations, claim-level billing data, and insider knowledge drive many False Claims Act recoveries.

    For Find Corporate Waste⁠, the case fits the broader enforcement pattern: federal programs rely on accurate certifications and truthful claim data, and public money can be recovered when those representations are allegedly false.

  • Brooklyn Clinic Manager Convicted in $8M Medicare Fraud Scheme

    Brooklyn Clinic Manager Convicted in $8M Medicare Fraud Scheme

    A federal jury convicted Olga Popovych, a New York clinic manager, for her role in an $8 million Medicare fraud scheme, according to the DOJ.  

    Prosecutors said Popovych managed several physical therapy clinics that paid cash kickbacks to ambulette drivers who brought Medicare patients to the clinics. The DOJ said she was personally involved in paying the kickbacks and falsifying medical records to claim that physical therapists treated patients when they were not actually present.  

    Between 2018 and 2020, Medicare paid the clinics more than $8 million. Trial witnesses also testified that Popovych used coded text messages to discuss kickbacks and took steps to conceal the scheme after suspecting law enforcement was watching the clinics.  

    The jury convicted Popovych of conspiracy to commit health care fraud, conspiracy to make false statements relating to health care matters, four counts of health care fraud, and three counts of making false statements relating to health care matters.

    She faces up to 10 years for each health care fraud conviction and up to 5 years for each false-statement conviction. A federal judge will determine the sentence under the U.S. Sentencing Guidelines and other statutory factors.  

    The case was investigated by HHS-OIG and the FBI.

    Anyone with inside knowledge of kickback arrangements, false billing, fabricated medical records, or patient-recruitment schemes involving federal health care programs may have information relevant to public-fraud enforcement.

    Find Corporate Waste protects confidential sources and helps preserve the right to report fraud.

  • Louisiana Woman Pleads Guilty in PPP Kickback Scheme

    Louisiana Woman Pleads Guilty in PPP Kickback Scheme

    A Louisiana woman pleaded guilty for her role in a multi-state Paycheck Protection Program fraud scheme that allegedly used ineligible borrowers, fake tax forms, and kickbacks to obtain pandemic-relief funds.

    According to the DOJ, Lisa Lemoine, 38, of Bossier City, Louisiana, pleaded guilty to one count of conspiracy to commit wire fraud.

    Federal prosecutors said Lemoine worked with alleged co-conspirators Sniders Jean-Jacques, Lorne Johnson, Tanya Pierre, Ashley Spike, and others to submit fraudulent PPP applications for borrowers and collect up to 30% of the loan proceeds as a fee.

    Beginning in March 2021, Lemoine allegedly recruited borrowers who were not eligible for PPP loans, claimed they operated qualifying businesses, and created fake tax forms to support the applications.

    Prosecutors said she received kickbacks from borrowers who obtained PPP funds and shared those payments with co-conspirators.

    Jean-Jacques, Johnson, Pierre, and Spike were charged separately in connection with the same alleged scheme.

    The charge carries a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss from the scheme.

    This case underscores why Find Corporate Waste tracks PPP cases. Anyone with inside knowledge of PPP application brokers, fake tax forms, borrower-recruitment networks, or lender-side approval failures may have information relevant to public-fraud enforcement.

    Contact Find Corporate Waste if you know how taxpayer funds were obtained, approved, or forgiven despite false statements.

  • Hawaii Housing Official Sentenced In $11M Affordable Housing Bribery Scheme

    Hawaii Housing Official Sentenced In $11M Affordable Housing Bribery Scheme

    Find Corporate Waste will continue to investigate similar fraud theories.

    A former Hawaii County housing official was sentenced to 46 months in prison for his role in a public corruption scheme involving affordable housing agreements worth more than $11 million, according to the DOJ.

    Alan Scott Rudo, a former Housing Specialist at the Hawaii County Office of Housing and Community Development, admitted that he accepted bribes in exchange for using his official position to help secure county approval of three affordable housing agreements.

    The agreements benefited development companies tied to Paul Sulla, Gary Zamber, and Rajesh Budhabhatti: Luna Loa Developments LLC, West View Developments LLC, and Plumeria at Waikoloa LLC.

    The DOJ said the companies promised to build affordable housing for Hawaii County residents but never built a single unit. Instead, the defendants obtained more than $11 million worth of land and excess affordable housing credits.

    From that amount, Sulla, Zamber, and Budhabhatti paid or attempted to pay Rudo approximately $1.93 million in bribes and kickbacks.

    Rudo pleaded guilty and testified at trial. His co-conspirators were convicted by a federal jury in June 2025. Zamber was sentenced to 70 months, Budhabhatti to 90 months, and Sulla to 60 months in prison.

    This case shows how affordable housing programs can be converted into private enrichment when public officials, developers, and professionals coordinate around government-controlled benefits.

    Anyone with inside knowledge of similar housing-credit, land-transfer, or public-benefit abuse should report the conduct to Find Corporate Waste to see if your case qualifies as a False Claims Act referral pathway.

  • Brooklyn Clinic Owner Convicted in $52M Health Care Fraud and Kickback Scheme

    Brooklyn Clinic Owner Convicted in $52M Health Care Fraud and Kickback Scheme

    A federal jury in the Eastern District of New York convicted Tony Brown-Arkah, 78, owner of American Medical Centers, a Brooklyn clinic that purported to provide substance abuse treatment, for his role in a $52 million health care fraud, narcotics, and kickback scheme.

    According to the Department of Justice, Brown-Arkah’s clinic illegally prescribed Suboxone, a Schedule III narcotic used to treat opioid use disorder, while allowing drug diversion activity to operate around the clinic. Witnesses testified that patients were directed to sell prescriptions outside the facility, including to a van near the clinic.

    The DOJ said many patients received prescriptions signed by a nurse practitioner in Florida who did not see or speak with them. Patients were also subjected to medically unnecessary testing, while Medicare and Medicaid were billed for services that were not provided or not legitimate.

    Brown-Arkah was also convicted of paying patient kickbacks and receiving laboratory kickbacks tied to unnecessary testing referrals. Prosecutors said he used a shell company and sham contract to conceal the payments.

    The case reflects the DOJ’s continued focus on health care fraud involving addiction treatment, laboratory testing, controlled substances, and federal program billing.

    DOJ Press Release — Clinic Owner Convicted for $52M Health Care Fraud, Illegal Narcotics Distribution, and Kickback Scheme

    DOJ Health Care Fraud Unit

    Find Corporate Waste — False Claims Act