Contra Costa Herald

News Of By and For The People of Contra Costa County, California

49 state attorneys general file lawsuit against telecom company over billions of illegal robocalls

By Leave a Comment

An estimated 577 million robocalls sent to California phone numbers on National Do Not Call Registry 

Including Social Security, Medicare and employment scams

SACRAMENTO – California Attorney General Rob Bonta today, as part of a bipartisan coalition of 49 attorneys general, announced a lawsuit against Arizona-based Avid Telecom for allegedly initiating and facilitating billions of unlawful robocalls in California and around the country. Those robocalls included Social Security Administration scams, Medicare scams, and employment scams; two robocall examples can be heard here and here. Today’s complaint is the result of efforts by the nationwide Anti-Robocall Litigation Task Force, which Attorney General Bonta helped launch last year and is charged with taking legal action against telecommunications companies that perpetuate robocall traffic.

“As the People’s Attorney, I’ve been laser focused on protecting consumers since taking office, and stopping unwanted robocalls is an important bipartisan and nationwide effort,” said Attorney General Bonta. “In addition to being a daily annoyance, robocalls can and do cause real financial damage. I’m taking Avid Telecom to court for delivering not hundreds, or thousands, or millions of robocalls — but billions of robocalls. Our coalition alleges that Avid Telecom has violated federal and state laws, and we are confident that we will prevail.”

From December 2018 to January 2023, Avid Telecom sent or attempted to transmit over 24.5 billion calls to consumers. More than 90% of those calls lasted under 15 seconds, strongly indicating that they were likely robocalls. Further, Avid Telecom sent or transmitted over 7.5 billion calls to telephone numbers on the National Do Not Call Registry, an estimated 577,879,156 of those calls were to telephone numbers in California. Registering for the National Do Not Call Registry allows consumers to legally opt out from receiving telemarketing calls, but robocallers regularly fail to respect such legal prohibitions.

In the multistate coalition’s complaint, among other misconduct, Attorney General Bonta alleges that Avid Telecom:

  • Violated the Telephone Consumer Protection Act, which prohibits any person from making a call using an automatic telephone-dialing system or an artificial or prerecorded voice to any cellular telephone;
  • Violated the Telemarketing Sales Rule, which prohibits abusive and deceptive acts or practices by “sellers” or “telemarketers”;
  • Violated the Truth in Caller ID Act, which prohibits the transmission of misleading or inaccurate caller-ID information;
  • Violated California’s Unfair Competition Law, which prohibits unlawful, unfair, or fraudulent business acts and practices, by transmitting a colossal number of illegal robocalls into California.

In filing today’s complaint, Attorney General Bonta joined the attorneys general of Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.

A copy of the lawsuit can be found here.

 

Mortgage company president guilty on 100 felony counts in $7 million statewide fraud scheme

By Leave a Comment

Robert Sedlar of Grand View Financial LLC which operated in the counties of Contra Costa, San Diego, San Mateo, Alameda, San Joaquin, Placer, Solano, Mendocino, San Francisco, El Dorado, and Sacramento. 

OAKLAND —  California Attorney General Rob Bonta announced Friday, May 12 the former president of a purported mortgage “investment” company, Robert Sedlar, has been convicted of 100 felony counts for operating a mortgage fraud scheme throughout California. The scheme resulted in a combined loss of over $7 million. The victims, including people who were elderly and in financial distress, sought mortgage relief services from Grand View Financial LLC in the counties of Contra Costa, San Diego, San Mateo, Alameda, San Joaquin, Placer, Solano, Mendocino, San Francisco, El Dorado, and Sacramento. The operators of Grand View Financial—Steven Rogers, Robert Sedlar, and Audrey Gan—were previously indicted by a grand jury in the Sacramento Superior Court for conspiracy, grand theft, elder abuse, filing false or forged documents in a public office, and engaging in a prohibited act as a foreclosure consultant. Steve Rogers and Audrey Gan entered guilty pleas before trial, and Robert Sedlar, president of the company, proceeded to trial in March 2023 on all counts. Today, Robert Sedlar was found guilty of Conspiracy as well as multiple counts of Filing a False Document, Grand Theft, Elder Abuse, and Prohibited Acts by a Foreclosure Consultant. He will be sentenced on July 21, 2023.

“Let this be a strong warning to anyone seeking to steal people’s hard-earned money: We will find you, and we will hold you accountable,” said AG Bonta. “Individuals who prey on vulnerable communities to enrich themselves will be held accountable by the California Department of Justice. My office will continue to work with our law enforcement partners to identify and prosecute those who disregard the rule of law.”

Between 2015 and 2019, the defendants conspired to steal money and homes from distressed homeowners using a company called Grand View Financial LLC. The company advertised assistance to desperate homeowners facing foreclosure. The defendants promised consumers that if they transferred title of their house to Grandview Financial and paid money, the company would eliminate the mortgage lien and deed the home back to the homeowner, clear of any liens. During this time, the defendants filed false court documents, false documents with the county recorders offices, and false bankruptcies that stalled the foreclosures but did nothing to eliminate the liens, all while collecting funds from the victims. Every single victim lost their home as a result.

The indictment and arrests are the result of a joint investigation by the California Department of Justice, Fraud and Special Prosecutions Section and White Collar Investigation Team; the United States Office of Inspector General, Federal Deposit Insurance Corporation; the United States Office of Inspector General, Federal Housing Finance Agency; the United States Trustee Program; the United States Marshals Service; the Stanislaus County District Attorney’s Office; and the El Dorado County District Attorney’s Office.

A copy of the charges can be found here.

 

Antioch Police Chief pledges full cooperation with CA DOJ, announces acceptance into new Trust Building Campaign with 25 Key Policies

By Leave a Comment

Source: IACP

By PIO Ashley Crandell, Antioch Police Department Community Engagement Unit

On May 10, 2023, California Attorney General Rob Bonta announced the Department of Justice (DOJ) has launched a civil rights investigation into the Antioch Police Department. Chief Steven Ford welcomes this investigation and pledges full cooperation with DOJ officials, just as we have done with the joint FBI-Contra Costa DA investigation already taking place. We understand the importance of ensuring our policies, procedures, and practices are in line with expectations of 21st Century Policing.

In furtherance of our commitment toward meaningful reform, the Antioch Police Department is pleased to announce that we have joined other progressive policing agencies across the United States (and globally) in pledging to enhance trust and collaboration between police and the community we serve. The pledge is part of an initiative called the Trust Building Campaign which was started by the International Association of Chiefs of Police (IACP), the world’s largest and most influential professional association for police leaders. In joining the Trust Building Campaign, the Antioch Police Department has pledged to implement 25 key policies and leading practices within a 36-month period.

As we complete the Trust Building Campaign pledge, the Antioch Police Department will prioritize actions encouraging positive community-police partnerships within six focus areas (bias-free policing, use of force, leadership and culture, recruitment, hiring, and retention, victim services, and community relations). These areas and their associated key practices are designed to promote safe, effective interactions, create strategies to prevent and reduce crime, and improve the wellbeing and quality of life for all.

In a world where information is spread so quickly, it is critical, now more than ever, that law enforcement have the trust of the community that they will provide truth, transparency, and justice.

Through the Trust Building Campaign, the IACP is committed to addressing these, and other issues, on a national and international level.

Statement from Chief Steven Ford:

“We are excited to announce this partnership with the IACP Trust Building Campaign. This initiative aligns with our Strategic Plan goals that we have been progressively implementing during our Public Safety Partnership and emphasizes our commitment to advancing public safety practices through community engagement, transparency, and bias-free policing. We look forward to collaborating with our community stakeholders, justice partners, and industry experts to ensure success in meeting the goals of this campaign.”

For more information about the Trust Building Campaign, visit the IACP’s website at https://www.theiacp.org/iacp-trust-building-campaign.

25 Key Policies and Promising Practices

  1. Establish a policy on bias-free policing.
  2. Increase transparency and accountability of police use of force. Publish use of force and complaint process policies.
  3. Provide officers with training and coaching on cultural responsivity.
  4. Train officers on the unique makeup and needs of their communities based on country of origin, religious and cultural practices, etc. which may conflict with local laws.
  5. Adopt the elements of the National Consensus Policy on Use of Force into the agency’s policies and procedures. Publish use of force policy
  6. Provide regular training on the agency’s use of force policy. Training should include scenario-based exercises that incorporate de-escalation techniques.
  7. Document all use of force beyond handcuffing in agency records. Review these records on an annual basis to identify trends that need to be addressed in policy and training.
  8. Participate in the National Use of Force database.
  9. Establish an agency policy or statement that recognizes the sanctity of life and the importance of preserving human life during all encounters. Adopting the IACP Oath of Honor will meet this requirement.
  10. Participate in accreditation, certification, or credentialing process that has an independent organization that reviews an agency’s policies and procedures.
  11. Ensure training and policy reflect a culture of equity, diversion, inclusion, accountability, and that promote procedural justice for community members and employees alike.
  12. Establish an employee wellness program that includes both physical and mental health.
  13. Conduct a culture assessment of the organization, with steps taken to address areas of concern.
  14. Provide body armor to officers and require the wearing of soft body armor while on uniformed patrol.
  15. Embrace the guardian officer rather than the warrior mindset in recruiting and training.
  16. Establish minimum educational standards or equivalency requirements that can be met by prior life experience. Provide officers with the opportunity for advanced education and training opportunities.
  17. Verify potential hires with the national decertification database before hiring experienced officers.
  18. Include measures of problem-solving, trust-building, and cultural responsivity in metrics of officer performance.
  19. Train officers in Trauma-Informed Responses.
  20. Train officers on best practices, resources, and tools for communicating with community members who do not speak English or whose ability to communicate is impaired.
  21. Establish partnerships to provide for mental health, substance abuse, and youth deflection/diversion resources in their community.
  22. Educate communities on the dynamics of policing and set reasonable expectations for their police. Establish shared expectations of the role police have in the community and solicit review and input from the community on agency policies and procedures.
  23. Establish a clear and timely complaint process that does not require written or sworn statements to submit. Complaint processes and policies should be accessible to all.
  24. Conduct a regular recurring survey of the community to measure the level of trust in the police.
  25. Establish written strategies to engage with youth and marginalized groups in the community to develop positive relationships with police officers and how to interact safely with police.

 

 

 

CA Attorney General Bonta launches civil rights investigation into Antioch Police Department

By Leave a Comment

Review comes amidst allegations of bigoted text messages and other potentially discriminatory misconduct 

OAKLAND — California Attorney General Rob Bonta today announced initiating a civil rights investigation into the Antioch Police Department (APD). The investigation will seek to determine whether the law enforcement agency has engaged in a pattern or practice of unconstitutional policing amid deeply concerning allegations relating to bigoted text messages and other potentially discriminatory misconduct. If, through this investigation, the Attorney General’s Office determines that unlawful activity or practices took place, the office will also determine what potential actions are needed to ensure comprehensive corrective action takes place at APD.  (See related articles here and here)

“It is our job to protect and serve all of our communities,” said Attorney General Bonta. “Police departments are on the front lines of that fight every day as they work to safeguard the people of our state. However, where there are allegations of potentially pervasive bias or discrimination, it can undermine the trust that is critical for public safety and our justice system. It is our responsibility to ensure that we establish a culture of accountability, professionalism, and zero tolerance for hateful or racist behavior, on or off duty.”

Under the California Constitution and California Civil Code section 52.3, the Attorney General is authorized to conduct civil investigations into whether a law enforcement agency has engaged in a pattern or practice of violating state or federal law. As opposed to a criminal investigation into an individual incident or incidents, a pattern or practice investigation typically works to identify and, as appropriate, compel the correction of systemic violations of the constitutional rights of the community at large by a law enforcement agency. With regard to the Antioch Police Department, the Attorney General has made no determinations at this time about specific complaints, allegations, or the agency’s overall policies and practices. The Attorney General’s independent investigation of APD is separate from ongoing or potential administrative or criminal investigations at the local and federal levels.

As interaction and cooperation with the community is at the core of law enforcement’s work to provide public safety and create public trust, the Attorney General encourages anyone with information relevant to this investigation to contact the California Department of Justice’s Civil Rights Enforcement Section at Police-Practices@doj.ca.gov. Members of the public may also send information to the California Department of Justice in other languages. During the course of the investigation, attorneys and special agents at the California Department of Justice will work diligently to consider all relevant information, including from community members and organizations, local officials, oversight entities, Antioch Police Department, and individual officers.

Attorney General Bonta is committed to strengthening trust between local law enforcement and the communities they serve as one key part of the broader effort to increase public safety for all Californians. In February, Attorney General Bonta launched an investigation into allegations of excessive force at the Riverside County Sheriff’s Department. Last year, the Attorney General assumed responsibility for the Los Angeles County Sheriff’s Department’s investigation related to contracts awarded to a local nonprofit. He worked with authorities in San Francisco to help ensure the continuation of local oversight efforts related to officer-involved shootings, in-custody deaths, and severe uses of force. Attorney General Bonta also opened a pattern or practice investigation into the Santa Clara County Sheriff’s Office. In 2021, the Attorney General launched an independent review of the Torrance Police Department and secured a stipulated judgment against the Bakersfield Police Department requiring an extensive range of actions to promote public safety. Attorney General Bonta also established the Racial Justice Bureau within the Civil Rights Enforcement Section to, among other things, help address issues of implicit and explicit bias in policing.

 

Alamo man charged with running $39 million Ponzi scheme

By Leave a Comment

Derek Vincent Chu faces up to 20 years in prison and $250K fine for each count of wire fraud

SAN FRANCISCO – A federal grand jury indicted Derek Vincent Chu, charging him with crimes related to an alleged $39 million Ponzi scheme involving over 100 victims, on April 26, 2023, announced United States Attorney Ismail J. Ramsey, Internal Revenue Service – Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian, and FBI Special Agent in Charge Robert K. Tripp.

According to the indictment, between late 2013 and 2020, Chu, 41, of Alamo, Calif., used several companies to raise $39 million by fraudulently soliciting investments in the purchase and resale of professional basketball tickets and luxury suites at Oracle Arena, in Oakland, California; the Staples Center, in Los Angeles, California; and the Chase Center, in San Francisco, California. The indictment further alleges that Chu induced investors by making numerous materially false misrepresentations, including how the investor funds would be used, how investors would be repaid, and whether the investments were secured by collateral.

According to the allegations in the indictment, Chu commingled the investors’ money between his own personal accounts and his companies’ accounts, which resulted in investor money being used to repay other, earlier investors, and for other unrelated expenses. Furthermore, the indictment alleges that Chu misappropriated and diverted more than $7.3 million of investor funds for his own personal benefit, which included paying credit card debts; making cash withdrawals; paying for travel, luxury automobile and jewelry purchases; and paying utilities bills, among other things.

The indictment charges Chu with eight counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, and three counts of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Each wire fraud count has a maximum statutory sentence of 20 years in prison and a fine in the amount of $250,000. Each money-laundering count has a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000. The court also may order a term of supervised release, fines or other assessments, restitution, and forfeiture, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Chu was arrested this morning and made an initial appearance before the Hon. Laurel Beeler, U.S. Magistrate Judge for the Northern District of California. Chu’s next appearance is scheduled before Judge Beeler on Wednesday, May 10, 2023, for appearance of counsel.

The Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the San Francisco Police Department.

Individuals who believe that they may be a victim in this case should contact the United States Attorney’s Office for the Northern District of California’s victim specialists by email at: USACAN.DCVictimAsst@usdoj.gov.

 

13 arrested in multi-agency Contra Costa anti-human trafficking operations

By 1 Comment

Part of statewide Operation Reclaim and Rebuild, 30 survivors identified

By Ted Asregadoo, Public Information Officer, Contra Costa District Attorney’s Office

Partners working in collaboration with the Contra Costa Human Trafficking Task Force made 13 arrests during a weeklong statewide effort to recover survivors of human trafficking and apprehend their exploiters.

As a part of the statewide Operation Reclaim and Rebuild, task force partners conducted eight separate anti-human trafficking operations throughout Contra Costa County from January 23rd through January 28th, 2023. Their efforts yielded 13 arrests of suspected human traffickers and the identification of 30 survivors of human trafficking. All the victims had the opportunity to speak with a specialized human trafficking victim advocate and were offered services.

“My office stands ready to evaluate these cases for prosecution and hold traffickers accountable for their exploitation of vulnerable members of our community,” noted District Attorney Diana Becton.

The suspects were arrested on one or more of the following human trafficking or human trafficking related offenses: sex trafficking of an adult, a minor, pimping, and pandering. [PC236.1(b), PC236.1(c), PC266h, and PC266i].

Task Force Director, Katrina Natale, emphasized that “without the careful planning and collaborative efforts of a wide array of law enforcement and victim services partners, the important outcomes achieved through these operations would not have been possible.”

Participating agencies included, in alphabetical order:

  • Brentwood Police Department
  • California Department of Alcoholic Beverage Control
  • California Department of Corrections and Rehabilitation
  • California Department of Industrial Relations
  • California Employment Development Department
  • California Highway Patrol
  • Community Violence Solutions
  • Concord Police Department
  • Contra Costa County District Attorney’s Office
  • Contra Costa County FBI Safe Streets Task Force
  • Contra Costa County Parole Department
  • Contra Costa County Probation Department
  • Contra Costa County Sherriff’s Department
  • Federal Bureau of Investigations
  • Hercules Police Department
  • Homeland Security Investigations
  • International Rescue Committee
  • My Sister’s House
  • Northern California Regional Intelligence Center
  • Pinole Police Department
  • Pittsburg Police Department
  • Pleasant Hill Police Department
  • Richmond Police Department
  • San Pablo Police Department
  • San Ramon Police Department
  • Victim Services Division (FBI)
  • Victim Witness Assistance Program (CCCDA)
  • Walnut Creek Police Department

The Contra Costa Human Trafficking Task Force is co-led by the Office of the District Attorney for Contra Costa County and Contra Costa Human Trafficking Task Force Community Violence Solutions, a community-based 24-hour service provider for survivors of sexual assault and human trafficking. Founded in 2018, the Task Force aims to eradicate all forms of human trafficking in Contra Costa County through collaborative, multidisciplinary efforts to identify and support victims of human trafficking and to hold traffickers accountable through effective prosecution.

Anyone with information on suspected human trafficking (sex or labor) or related crimes is encouraged to make a report to your local law enforcement agency or the District Attorney’s Human Trafficking Tip Line (925) 957-8658.

 

Wrong way driver in fatal Hwy 4 crash released from custody to U.S Marshals

By Leave a Comment

Richmond suspect driving with suspended license for prior DUI

By CHP Contra Costa

Tuesday morning Dec. 13, 2022, at about 11:05am, CHP Contra Costa was advised of a wrong way driver traveling westbound in the eastbound lanes of Hwy 4 near Railroad Avenue. The wrong way vehicle (Dodge Durango) continued westbound in the eastbound lanes and collided head on into a Honda Accord traveling in the eastbound lanes of Hwy 4. Following the initial crash, the Honda was struck by a Toyota Highlander and was struck a third time by a three-axel tanker truck that were also traveling eastbound. All involved vehicles sustained major damage and came to rest within the eastbound lanes.

Following the crash, the driver of the Dodge fled the scene on foot but was apprehended by Pittsburg Police Department that came upon the scene shortly after.

The Honda was occupied by one adult driver and one adult passenger. The driver sustained fatal injuries and was pronounced deceased on scene and the passenger was transported to the hospital for major injuries. The Toyota was occupied by one adult driver and one infant passenger. Both occupants were transported to the hospital for complaint of pain injuries. The tanker truck was occupied by an adult driver who was uninjured.

According to a Mercury News report, the Contra Costa Coroner’s Office identified the victim as James Kuang age 50. Attempts to reach the Coroner’s Office to determine the victim’s city of residency were unsuccessful Friday.

CHP Contra Costa PIO Adam Lane said Friday that the wrong way driver is Michael Armstrong age 53 of Richmond was booked on charges of murder, DUI resulting in injury, driving the wrong way resulting in injury or death and driving with a suspended license for a prior DUI.

According to Contra Costa DA’s Office PIO Ted Asregadoo, “the suspect was released from custody from the Martinez Detention Facility on Thursday by the U.S. Marshals because of a federal matter. So, CHP will not be bringing the case to the DA’s office for filing charges, today.”

At this time, it is believed drugs and/or alcohol impairment may have been a factor in this crash. This incident is still under investigation. If anyone witnessed this crash, the wrong way vehicle prior to the crash, or the events leading up to the crash, please contact CHP Contra Costa in Martinez at (925) 646-4980. Thank you.

Please check back later for any updates to this report.

Allen D. Payton contributed to this report.

California receives $1.2 million of settlement with Concord nursing home for poor care

By Leave a Comment

State Attorney General Bonta thanks U.S. Attorney’s Office for assistance

California Attorney General Rob Bonta on Tuesday secured a settlement against a Contra Costa County skilled nursing facility resolving allegations of understaffing and patient abuse and neglect. The settlement resolves claims that for five years, San Miguel Villa subjected its patients to poor care due to understaffing and effectively rendered a number of its services useless. The settlement amounts to a total of $2.3 million, with California receiving $1.2 million. (See related article)

“Corporate profits should never be placed above patient needs and care,” said Attorney General Rob Bonta. “Every patient is entitled to humane care, and skilled nursing facilities should always have the appropriate level of staffing to ensure this standard of dignity is met. I want to thank the U.S. Attorney’s Office for their critical help during the course of this investigation. With the help of our federal partners, my office will continue to protect the well-being of all Medi-Cal beneficiaries.”

In June 2017, the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA) responded to a report from the U.S. Attorney’s Office for the Northern District of California (USAO) involving allegations of overmedication of residents at San Miguel Villa. The USAO requested DMFEA’s assistance in the investigation. Conducted by DMFEA and the USAO, the investigation analyzed residents’ medical charts, surveys from the California Department of Public Health, prescription records, and publicly available staffing information from 2012-2017 – the time frame when the alleged mistreatment occurred. The investigation uncovered evidence of understaffing at the facility resulting in harm to residents, such as increased falls, patient-on-patient violence, weight loss, and overmedication to render patients more manageable. Tuesday’s settlement amounts to a total of $2.3 million, with California receiving $1.2 million.

The California Department of Justice’s DMFEA protects Californians by investigating and prosecuting those who defraud the Medi-Cal program as well as those who commit elder abuse. These settlements are made possible only through the coordination and collaboration of governmental agencies, as well as the critical help from whistleblowers who report incidences of abuse or Medi-Cal fraud at oag.ca.gov/dmfea/reporting.

DMFEA receives 75% of its funding from HHS under a grant award totaling $53,792,132 for federal fiscal year 2022-2023 The remaining 25% is funded by the State of California. The federal fiscal year is defined as October 1, 2022, through September 30, 2023.

A copy of the settlement is available here.

Concord nursing home to pay $2.3 million in settlement of grossly substandard care allegations

By 1 Comment

Submitted false claims in billing to Medicare and Medi-Cal programs

By U.S. Attorney’s Office, Northern District of California

Tranquility Incorporated, a corporation doing business as San Miguel Villa which is a 190-bed skilled nursing facility located in Concord, CA, has agreed to pay $2.3 million to settle allegations that it submitted false claims by billing the Medicare and Medi-Cal programs for grossly substandard nursing home services it provided to its residents between 2012 and 2017, announced United States Attorney Stephanie M. Hinds and Department of Health and Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan. (See settlement)

The settlement resolves allegations that from 2012 to 2017 San Miguel Villa submitted, or caused to be submitted, claims to the Medicare and Medi-Cal programs for payment of its services that were grossly substandard and failed to meet minimum required standards of skilled nursing care in multiple ways. The United States alleges that nursing home residents at San Miguel Villa were overmedicated with psychotropic drugs, suffered excessive falls, were exposed to resident-on-resident altercations, and experienced other mental and physical harm.

“Residents of nursing homes are among the most vulnerable in our community, and they rely on Medicare and Medi-Cal programs to provide the care and services they must have,” said United States Attorney Stephanie M. Hinds. “Nursing homes are entrusted to impart competent and quality care to their residents. This case demonstrates that when federal funds are provided but substandard care is delivered, this office is committed to seeking accountability.”

“Nursing homes are intended to be places of comfort and healing, but the provision of substandard care jeopardizes the residents’ health and safety,” stated Steven J. Ryan, Special Agent in Charge with HHS-OIG. “HHS-OIG and our law enforcement partners are staunchly dedicated to investigating allegations of inadequate care at Medicare- and Medicaid-certified nursing homes.”

Assistant U.S. Attorney Gioconda Molinari investigated the matter with the assistance of Paralegal Lillian Do and Auditor Garland He. The United States Attorney’s Office initiated the investigation with assistance from HHS-OIG as part of its ongoing commitment to ensure that nursing home residents receive the necessary skilled nursing home services that they are entitled to and require. The United States Attorney’s Office acknowledges and thanks HHS-OIG as well as the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse for their assistance in investigating this matter.

Working in conjunction with the United States Department of Justice Elder Justice Initiative, the United States Attorney’s Office runs an Elder Justice Task Force to identify and investigate nursing homes that provide grossly substandard care, and to support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals who combat elder abuse, neglect and financial exploitation. If you or a loved one is experiencing abuse at a nursing home, please contact the California Long Term Care Ombudsman Crisis line at 1-800-231-4024, or the National Elder Fraud Hotline at 1-833–FRAUD–11 (or 833–372–8311).

 

Sutter Health agrees to pay $13 Million to settle False Claims Act allegations of improper billing for lab tests

By Leave a Comment

By U.S. Attorney’s Office, Northern District of California, U.S. Department of Justice

SAN FRANCISCO – Sutter Health, a Sacramento-based health care services provider, and its affiliate Sutter Bay Hospitals, the successor to Sutter East Bay Hospitals dba Alta Bates Summit Medical Center (collectively Sutter Health), agreed to pay more than $13 million to settle allegations that it violated the federal False Claims Act by billing the United States for toxicology screening tests performed by outside labs, announced United States Attorney Stephanie M. Hinds; Federal Bureau of Investigation San Francisco Special Agent in Charge Robert K. Tripp; Office of Personnel Management Office of Inspector General (OPM OIG) Special Agent in Charge Amy K. Parker; Department of Health and Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan; Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Western Field Office Special Agent in Charge Bryan D. Denny; and the Defense Health Agency (DHA). Sutter Health DOJ Settlement Agrmt 10.17.2022

“Sutter Health agreed to pay $13 million to settle allegations that it billed government health programs for lab tests performed by others,” said U.S. Attorney Stephanie M. Hinds. “Government health care programs must be protected, and this office will investigate and pursue health care providers that fail to provide the services paid for by public health care programs.”

“Investigating health care fraud and abuse is a priority for the FBI,” said FBI San Francisco Special Agent in Charge Robert K. Tripp. “These cases are often worked in conjunction with our federal law enforcement partners, and this settlement is a great example of the multi-agency investigative team’s hard work to protect the integrity of the Federal Employees Health Benefits Program.”

“The OPM OIG is committed to protecting the Federal Employees Health Benefits Program from fraudulent claims,” said OPM OIG Special Agent in Charge Amy K. Parker. “I applaud the dedicated team for their effort in securing today’s settlement.”

“When medical providers charge federal health care programs for services that other providers actually performed, the integrity of these programs is undermined,” said HHS-OIG Special Agent in Charge Steven J. Ryan. “Working with our law enforcement partners, we will continue to uproot and investigate such schemes.”

“Today’s announced outcome concludes a collaborative effort to hold Sutter Health accountable for its improper billing practices that harmed our health care system, including the Department of Defense’s TRICARE program,” said DCIS Western Field Office Special Agent in Charge Bryan D. Denny. “DCIS will continue to work closely with our law enforcement partners to protect the integrity of the health care system.”

“We commend the Department of Justice, the U.S. Attorney’s office, and the other state and federal agencies for their commitment to justice,” stated the Defense Health Agency. “Their efforts protect taxpayer dollars to ensure our service members, veterans and their families continue to receive the highest level of medical care.”

The United States contends in the civil settlement agreement signed by Sutter Health that under the terms of a contract which the Sutter Health hospital Alta Bates Summit Medical Center entered into with Navigant Network Alliance, LLC, Navigant referred urine toxicology specimens obtained from physicians and laboratories across the country to Sutter. Sutter submitted bills, or caused bills to be submitted, for reimbursement of the qualitative and quantitative testing it performed on the specimens. The United States asserts that Sutter did not perform the quantitative testing on thousands of specimens referred under the agreement and that these quantitative tests were instead performed by third-party labs. The United States alleges that Sutter nevertheless sought reimbursement for the tests. In the settlement agreement, the United States contends that between August 1, 2016, and June 30, 2017, Sutter billed for urine toxicology tests it did not perform and was paid for the testing by the Federal Employees Health Benefits Program, Medicare, Medicaid, and Tricare.

Sutter agrees in the settlement agreement to pay $13,091,452 to settle the false claims allegations. Of that amount, Sutter has already paid more than $6.5 million to the United States. Sutter agrees to pay the remaining amount of approximately $6.5 million to the United States within 30 days. The settlement agreement resolves the civil law claims that the United States might have brought based upon these allegations.

This matter is being handled by Assistant United States Attorney David DeVito, with assistance from Garland He, Jonathan Birch, Lillian Do, and Alan Lopez. The matter is the result of a coordinated investigation between the U.S. Attorney’s Office for the Northern District of California and the FBI, OPM OIG, HHS-OIG, DCIS, and the DHA.

The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The civil settlement agreement is neither an admission of liability by Sutter Health nor a concession by the United States that its claims are not well founded.