Attorney General Pam Bondi’s Medicaid Fraud Control Unit and the Lee County Sheriff’s Office today announced the second arrest of Ryan Todd Powers, 40, for grand theft of a motor vehicle.
Last month, following a MFCU investigation, authorities arrested the Lee County man on two counts exploitation involving an elderly person. According to the investigation, Powers unlawfully obtained funds from an elderly relative suffering from physical limitations. In order to manage his relative’s affairs, Powers obtained a durable power of attorney on behalf of the victim. Using the power of attorney, Powers allegedly misappropriated the victim’s funds and property.
Since Powers’ release on bond, an ongoing investigation by MFCU’s Patient Abuse, Neglect and Exploitation Team discovered that Powers continued to use the power of attorney to sell a vehicle belonging to the elderly relative, again misappropriating property and funds for purposes other than the relative’s benefit.
In addition to the initial counts of exploitation, both third-degree felonies, Powers faces one count of grand theft of a motor vehicle, a third-degree felony. If convicted, Powers faces up to 15 years in prison and more than $20,000 in fines and restitution. The State Attorney’s Office for the 20th Judicial Circuit will prosecute the case.
The Florida Attorney General’s Medicaid Fraud Control Unit investigates allegations of patient abuse, neglect, and exploitation in facilities receiving payments under the Medicaid program. The Patient Abuse, Neglect and Exploitation Team plays a key role in helping to ensure that efficient and effective healthcare is being provided. Additionally, the MFCU investigates and prosecutes providers that intentionally defraud the state’s Medicaid program through fraudulent billing practices. Medicaid fraud essentially steals from Florida’s taxpayers. From Jan. 2011 to the present, Attorney General Bondi’s MFCU has obtained more than $500 million in settlements and judgments.
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Attorney General Bondi Warns of Repair Scams Following Recent Storms
In the aftermath of the deadly thunderstorms that impacted the Southeast, Attorney General Pam Bondi is urging Floridians to be wary of storm-related scams and is offering tips to safeguard against potential scammers.
“While there is not an official declared state of emergency in Florida due to the recent severe weather, affected consumers may still be targeted by scammers,” said Attorney General Bondi. “In many parts of our state, trees are uprooted, homes and businesses are damaged and contractors and tree removal services are in demand, making conditions ideal for scams.”
After a severe and damaging storm, unscrupulous individuals will sometimes prey on those in distress. To safeguard against scams in the aftermath of a storm, consumers should follow these tips:
- Be wary of anyone who approaches unsolicited about property repairs or tree removal;
- Acquire multiple written estimates and ask whether debris removal is included in the estimate;
- Research the company and its reputation – ask for references and contact the Better Business Bureau to see if there are complaints against the company;
- Verify that the contractors or tree service companies are licensed by contacting the Florida Department of Business and Professional Regulation;
- Check for proof of insurance and verify with the insurer that their policy is current; and
- Never pay up front or make final payment until completely satisfied with repairs.
Consumers can report fraudulent activity by calling the Attorney General’s fraud hotline at 1(866) 9-NO-SCAM or by filing a complaint online at MyFloridaLegal.com.
Attorney General Bondi and FTC Jointly Settle Lawsuit Against Debt Relief Companies
Attorney General Pam Bondi and the Federal Trade Commission announced a settlement with several related debt relief and credit repair services companies and their principal. The settlement resolves allegations that Chastity Valdes and her companies, Consumer Assistance LLC, Consumer Assistance Project Corp. and Palermo Global LLC, engaged in unlawful debt relief operations targeting student loan holders. Among other things, the settlement bans the defendants from operating in the debt relief and credit repair industries.
In 2016, Attorney General Bondi’s Office and the FTC filed a joint lawsuit against Valdes and her companies, alleging the defendants took illegal up-front fees in return for their purported debt relief and credit repair services. According to the complaint, the defendants allegedly falsely claimed these services reduced consumers’ student loan debt and repaired consumers’ credit. The complaint also asserted violations of the Florida Deceptive and Unfair Trade Practices Act, the FTC Act, the Telemarketing Sales Rule and the Credit Repair Organizations Act.
As part of the settlement, the defendants are banned from selling debt relief and credit repair services and prohibited from making material misrepresentations about any products or services. The defendants are also barred from misrepresenting endorsements, profiting from consumers’ personal information and failing to dispose of personal information properly.
The order also imposes a judgment of more than $2.3 million, which will be suspended upon the surrender of virtually all of the defendants’ assets. If the defendants are found to have misrepresented their financial condition, the full judgment will become due immediately.
To view the stipulated order, click here.
To view the motion for preliminary injunction against Valdes and her companies, click here, and for the complaint, click here.
Attorney General Bondi Presents Resolution Recognizing Human Trafficking Awareness Month
Attorney General Pam Bondi today presented a resolution recognizing January 2017 as Human Trafficking Awareness Month at a meeting of the Governor and State Cabinet in Tallahassee.
“I am dedicated to making Florida a zero-tolerance state for human trafficking and this Human Trafficking Awareness Month I am asking all Floridians to take an active role in the fight to end this form of modern-day slavery. Floridians should know how to spot a trafficking victim and who to contact to report the crime. I encourage everyone to take an active role and visit YouCanStopHT.com to learn how to identify a victim and report it,” said Attorney General Bondi.
To view the resolution, click here.
At today’s Cabinet meeting Attorney General Bondi also awarded Floridians dedicated to making Florida a zero-tolerance state for human trafficking and helping victims recover.
The award recipients honored today are as follows:
- Dr. Brook Bello, founder and CEO of More Too Life, Survivor Advocate of the Year;
- Miami-Dade Assistant State Attorney Brenda Mezick, Prosecutor of the Year;
- The Crisis Center of Tampa Bay, Community Advocate of the Year, represented by CEO Clara Reynolds; and
- Florida Department of Law Enforcement Special Agent Jeffrey Vash, Law Enforcement Officer of the Year.
In addition to the Attorney General’s efforts through her Office of Statewide Prosecution to prosecute human trafficking crimes, Attorney General Bondi also chairs the Statewide Council on Human Trafficking. The Council builds on existing state and local partnerships working to combat human trafficking and serve victims. Law enforcement officers, prosecutors, legislators and experts in the fields of health, education and social services sit on the council.
Attorney General Bondi sues tobacco companies for violating settlement obligations
Attorney General Pam Bondi today filed an enforcement motion against ITG Brands, LLC f/k/a Lignum-2 LLC (ITG) and R.J. Reynolds Tobacco Company (RJR) to enforce the explicit terms of the tobacco settlement agreement dated Aug. 25, 1997. That agreement resolved Florida’s landmark 1995 lawsuit against RJR and the other major tobacco companies seeking relief from decades of past unlawful actions relating to the marketing and sale of cigarettes.
Pursuant to that agreement, RJR and the other major tobacco companies agreed to make annual payments to Florida of several hundred million dollars, in perpetuity. The annual payments compensate Florida for the past and future public health care expenses from its citizens’ consumption of the settling defendants’ cigarettes.
RJR recently sold three of its most iconic cigarette brands, Winston, Kool and Salem, along with a legacy Lorillard Tobacco Company brand, Maverick, to ITG for $7 billion. These four brands accounted for approximately 17 billion cigarettes sold in 2016, eight percent of the domestic tobacco market.
RJR has refused to include the sales of these cigarette brands when making annual payments to Florida, despite not having been released from its payment obligations. ITG has similarly refused to make any payment to Florida even after agreeing with RJR to assume the payment obligations for these iconic brands. The exact same cigarette brands continue to be sold to Floridians, thus imposing the very public health care expenditures that the settlement payments are intended to compensate.
“The sale of major, pre-existing tobacco brands to another company for billions of dollars does not cause the payment obligations to vanish like a puff of smoke,” said Attorney General Bondi. “I look forward to the state obtaining prompt relief.”
According to the enforcement motion, both RJR and ITG are liable for millions of dollars of missed payments to Florida on these brands. The motion seeks the entry of an order requiring payment to Florida for the past and future sales of these cigarettes and directing RJR and ITG to provide the necessary information to accurately calculate the amounts owed pursuant to reporting requirements under the settlement agreement.
To view a copy of the enforcement motion, click here.
Attorney General Bondi Issues Statement on Florida Supreme Court Decision in McCall v. Scott
Attorney General Pam Bondi issued the following statement in response to the Florida Supreme Court’s decision today to deny the review of a case challenging Florida’s Tax Credit Scholarship Program:
“Today, the Florida Supreme Court declined to review McCall v. Scott, a case dismissed by the lower court challenging the constitutionality of Florida’s Tax Credit Scholarship Program. I am pleased that the lower court’s decision will stand, and that this important program will continue to provide educational opportunities for children of families that have limited financial resources. Today is a great victory for our children.”
To view the Florida Supreme Court’s decision, click here.
Attorney General Bondi Announces Multimillion Dollar Settlement with Irish Pharmaceutical Company
Attorney General Pam Bondi is joining the federal government in a multistate settlement with Shire Pharmaceuticals LLC and other subsidiaries of Shire plc. Shire plc is a multinational pharmaceutical company headquartered in Ireland, with United States operations headquartered in Lexington, Mass. The agreement in principle settles allegations that Shire and the company it acquired in 2011, Advanced BioHealing, employed kickbacks and other unlawful methods to improperly promote a medical device called Dermagraft. Dermagraft is a bioengineered human skin substitute approved by the Food and Drug Administration for the treatment of diabetic foot ulcers.
The agreement resolves allegations that from 2007 to 2014, Dermagraft salespersons unlawfully induced clinics and physicians to use Dermagraft with payment of remuneration. These payments included lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates. According to the federal government, the U.S. settlement with Shire represents the largest False Claims Act recovery by the U.S. in a kickback case involving a medical device.
The federal Anti-Kickback Statute prohibits the payment of remuneration to induce the use of medical devices covered by Medicare, Medicaid and other federally-funded health care programs. Under the False Claims Act, claims filed in violation of the Anti-Kickback Statute are considered false or fraudulent. Additionally, the settlement resolves allegations that Shire and ABH unlawfully marketed Dermagraft for uses not approved by the FDA, made false statements to inflate the price of Dermagraft and caused improper coding, verification or certification of Dermagraft claims and related services.
As part of the settlement, Shire will pay the federal government $350 million. More than $14 million of this payment is going to the Medicaid program to resolve allegations that Shire’s improper promotion and marketing of Dermagraft caused false claims to be submitted to government health care programs. The states will receive more than $6 million for their share of the Medicaid program.
The settlement also resolves allegations asserted in six qui tam actions brought by whistleblowers in, or transferred to, the U.S. District Court for the Middle District of Florida. Two of the qui tam actions named various states and included allegations that Shire submitted or caused to be submitted false claims to the Medicaid program under the federal False Claims Act and various state false claims statutes.
A National Association of Medicaid Fraud Control Units Team participated in the investigation and conducted the settlement negotiations with Shire on behalf of the states. The team included representatives of Florida, Illinois, Ohio and New York Medicaid Fraud Control Units. The states coordinated their investigation in conjunction with the Department of Justice’s Civil Division’s Commercial Litigation Branch and the U.S. Attorneys’ Offices for the Middle District of Florida, the District of Columbia and the Eastern District of Pennsylvania.
Ten Arrested in Mail Theft Scheme
Attorney General Pam Bondi’s Office of Statewide Prosecution, the U.S. Postal Inspector Service and the Coral Springs Police Department today announced the arrests of 10 individuals in connection to string of mail thefts from post office boxes of Coral Springs residents.
According to the investigation, the defendants took letters containing checks deposited in the U.S. Mail. After illegally removing the letters from the stream of transit, the defendants allegedly removed all written information from the checks, leaving only the pre-printed information. The defendants then allegedly wrote in their own name and a higher amount and deposited the checks into their bank accounts.
The victims did not know the checks placed in the mail had been redirected, changed to a higher amount and cashed out until they received their bank statements.
Authorities arrested the following Miami-Dade County residents in connection to this case:
· Angel Luis Arcila Berovides, 19;
· Dayan Moreira Clemente, 21;
· Liubert Cordero, 27;
· Mario Jorge Marrero-Corvo, 21;
· Rosalia Llompart Garcia, 21;
· Lorena Gonzalez, 19;
· Geysi Hernandez Mendoza, 37;
· Enlys Cosme Palacios, 22;
· Alexander Reyes, 25; and
· Frank Rojas, 27.
The defendants face charges that include organized scheme to defraud, grand theft and identity theft. If convicted of all counts, the defendants face up to 15 years in prison. Attorney General Bondi’s Office of Statewide Prosecution will prosecute this case.
Attorney General Bondi and OFR Reach Multimillion Dollar Settlements with Online Lender
Attorney General Pam Bondi and Office of Financial Regulation Commissioner Drew J. Breakspear today announced coordinated settlements with the operators of an online lending scheme. The operators of the alleged scheme are Western Sky Financial, LLC, CashCall, Inc., WS Funding, LLC, Delbert Services Corporation and John Paul Reddam, who is President, CEO, owner and director of CashCall. Attorney General Bondi and OFR filed a joint action against the lenders in Hillsborough County Circuit Court. OFR also filed a separate administrative case font-family: Arial; font-size: medium;”>.
These settlements, in coordination with a pending Florida class action settlement against CashCall and Reddam filed in the U.S District Court for the Southern District of Florida, resolve allegations that the lender offered, serviced and collected on Western Sky loans to Florida borrowers with illegal interest rates of more than 18 percent. Subject to final court order in the class action, the settlements collectively provide more than $27 million in monetary relief to Floridians.
“Lending schemes harm consumers seeking financial assistance, and with these settlements, Florida borrowers will now be better protected from such business practices,” said Attorney General Bondi. “Thanks to a great partnership with the Office of Financial Regulation, Floridians will receive millions in restitution.”
Commissioner Drew J. Breakspear said, “I applaud the diligent efforts of our agency’s Division of Consumer Finance investigative team and the Florida Attorney General’s Office to protect Floridians from illegal business practices. Ensuring the financial industry is safe for consumers to do business is a top priority.”
Under the settlements, approximately 14,000 borrowers are expected to be eligible for a cash payment from a combined fund of more than $11 million. To be entitled to share in the fund, borrowers must have taken out a loan from these lenders and paid back more than principal plus 18 percent interest. Eligible borrowers will be contacted once payment details become formalized and refunds will vary based on the amount paid.
The settlements collectively include the following:
- The lenders are prohibited from enforcing or collecting an amount of more than $15 million in outstanding loan balances;
- The lenders are banned from future lending in Florida, including collecting, funding, making, offering, selling, servicing, soliciting or transferring any loans;
- CashCall’s lending license is revoked;
- John Paul Reddam is barred for life from obtaining any lending or other license from OFR; and
- The lenders are required to request the credit bureaus to remove any credit reporting entries relating to these loans appearing on borrowers’ credit reports.
The lenders paid $1,250,000 to Florida: a $500,000 civil penalty to Attorney General Bondi’s Office, a $500,000 administrative fine to OFR and $250,000 to Florida for costs.
To view the Attorney General’s Office and OFR’s joint stipulated judgment, click here.
To view a copy of the final order for OFR’s administrative case, click here.
To view the preliminary approval order in the pending class action settlement, click here.
Attorney General Bondi’s Statement on Loss of Master Sgt. Debra Clayton and Orange County Sheriff’s Deputy
Attorney General Pam Bondi released the following statement regarding the deaths of Master Sergeant Debra Clayton of the Orlando Police Department and an Orange County Sheriff’s Deputy:
“Today Florida lost two brave law enforcement heroes who died trying to keep us safe. Master Sergeant Debra Clayton of the Orlando Police Department was a dedicated law enforcement officer and a friend. She worked tirelessly to help children from low-income families and was a major advocate for preventing crime in the black community. Sergeant Clayton touched many lives and I am heartbroken at the loss of such a courageous, dedicated law enforcement hero.
“Tragically, we also lost a brave Orange County Sheriff’s Deputy who was participating in the manhunt. Another Orlando Police Officer suffered serious injuries. As the manhunt continues, my prayers are with Sergeant Clayton’s family, the Orange County Sheriff’s Deputy’s family and all law enforcement officers putting their lives on the line to protect us from danger.”
