On March 18, 2020, in response to the Covid-19 pandemic, the Defense Production Act was invoked making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services as scarce in order to hoard them or sell them for excessive prices.
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According to court documents, Portis caused the submission of false and fraudulent claims to the Plan on his behalf over a two-month period, obtaining $99,264 in benefits for expensive medical equipment that was not actually provided.
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Palatnik pleaded guilty to one count of conspiracy to offer kickbacks and one count of paying a kickback. He is scheduled to be sentenced on Nov. 9 and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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In asking for a 5-year prison sentence, prosecutors noted that Campbell had abused her position of trust, and even brought her co-workers under suspicion. “Then, once it became clear that Ms. Campbell acted alone, the employees felt blame and shame for failing to stop their boss’s criminal acts…. This money was intended
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In doing so, the Court noted the Medicaid program is a system of trust. “The whole system is built on honesty,” the court stated. “If you break faith with the honor system that we built to care for the least among us, a person who does that needs to know … you will go to a penitentiary.” In stating this, the Court expressly rejected the defendant’s argument for a probationary sentence.
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The defendant is scheduled for his initial court appearance Sept. 10 before U.S. Magistrate Judge Michael B. North of the U.S. District Court for the Eastern District of Louisiana. If convicted, he faces a maximum penalty of 10 years for conspiracy to commit health care fraud and 20 years each for all other counts. A federal district court judge will determine any sentence
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While on probation, Gibson will be supervised by the United States Probation Office and must undergo mental health treatment, anger management treatment, and have no contact with the victim or her minor children. In addition, Gibson is prohibited
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“The U.S. Attorney’s Office will continue to vigorously investigate healthcare fraud and protect taxpayer dollars, and cooperation from healthcare providers like Blessing Hospital goes a long way in supporting that mission.”
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“To put such a small price on the safety of our nation is not only an insult to those who are doing their part in the fight to stop COVID-19, but a federal crime with serious consequences.”
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