Business ProfileforVideo Doctor USA

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government's allegations, which have not yet been proven.

On April 5, 2019 United States Dept. Of Justice, U.S Attorney's Office, District of New Jersey, Reference # 2018R00919/Foster:

INDICTMENT
The Grand Jury in and for the District of New Jersey, sitting at Newark, charges:

1. At all times relevant to this Indictment:
Individuals and Entities
a. Defendant CREAGHAN HARRY was a United States citizen who resided in Highland Beach, Florida.
b. Defendant LESTER STOCKETT was a United States citizen who resided in the country of Colombia.
c. Defendant ELLIOT LOEWENSTERN was a United States citizen who resided in Boca Raton, Florida.
d. PCS CC, LLC ("Procall"), was a Delaware Corporation and a call center company that purported to do business throughout Latin America, including in Colombia.
e. Telehealth Doctor's Network, LLC (dba "Video Doctor USA") was a Delaware corporation and purported telemedicine company, doing business throughout the United States.
f. Telemed Health Group, LLC (dba "AffordADoc") (collectively,
with Video Doctor USA, the "Video Doctor Network") was a Delaware corporation and purported telemedicine company, doing business throughout the United States.
g- STOCKETT and HARRY owned, controlled, and/or operated
the following entities, which were used in the scheme:

Entity Date of Incorporation Incorporation
Location
Les Raphael, LLC January 19, 2010 State of Florida

NPC Consulting, LLC October 10, 2011 State of Florida

SCPL January 15, 2014 State of Wyoming

Best Dialer, LLC August 20, 2014 State of Wyoming

Video Doctor USA September 22, 2014 State of Delaware

Droneza Consulting Group May 5, 2016 Dominican Republic

Affordadoc May 27, 2016 State of Delaware

Procall June 13, 2016 State of Delaware

COUNT ONE
(Conspiracy to Defraud the United States and Pay and Receive Kickbacks)
D-1 CREAGHAN HARRY
D-2 LESTER STOCKETT
D-3 ELLIOT LOEWENSTERN
6. Paragraphs 1 through 5 of the General Allegations section of this Indictment are re-alleged and incorporated by reference as though fully set forth herein.
7. From in or around 2015, and continuing through in or around the present, in the District of New Jersey, and elsewhere, the defendants,
CREAGHAN HARRY, LESTER STOCKETT, and ELLIOT LOEWENSTERN
did intentionally and knowingly, combine, conspire, confederate, and agree with each other, and others known and unknown to the Grand Jury, to:
a. defraud the United States by cheating the United States government or any of its agencies out of money or property, or by impairing, impeding, obstructing, and defeating through deceitful and dishonest means, the lawful government functions of the United States Department of Health and Human Services in its administration and oversight of Medicare; and
b. commit certain offenses against the United States, that is:
i. to violate Title 42, United States Code, Section 1320a-
7b(b)(1)(A)-(B), by knowingly and willfully soliciting and receiving remuneration, specifically, kickbacks and bribes, directly and indirectly, overtly and covertly, in return for referring individuals for the furnishing and arranging for the furnishing of any item and service for which payment may be made in whole or in part by Medicare, and in return for purchasing, leasing, ordering, and arranging for and recommending purchasing, leasing, and ordering any good, facility, service, and item for which payment may be made in whole or in part under a Federal health care program; and
ii. to violate Title 42, United States Code, Section 1320a-
7b(b)(2)(A)-(B), by knowingly and willfully offering and paying remuneration, specifically, kickbacks and bribes, directly and indirectly, overtly and covertly, in return for referring individuals for the furnishing and arranging for the furnishing of any item and service for which payment may be made in whole or in part by Medicare, and in return for purchasing, leasing, ordering, and arranging for and recommending purchasing, leasing, and ordering any good, facility, service, and item for which payment may be made in whole or in part under a Federal health care program.

Object of the Conspiracy
8. It was the object of the conspiracy for defendants CREAGHAN HARRY, LESTER STOCKETT, ELLIOT LOEWENSTERN, and other co-conspirators to unlawfully enrich themselves by, among other things: (a) submitting or causing the submission of false and fraudulent claims to Medicare for claims based on kickbacks and bribes; (b) submitting or causing the submission of false and fraudulent claims to Medicare for services that were (i) medically unnecessary; (ii) not eligible for Medicare reimbursement; and/or (iii) not provided as represented; (c) concealing the submission of false and fraudulent claims to Medicare and the receipt and transfer of the proceeds from the fraud; and (d) diverting proceeds of the fraud for the personal use and benefit of the defendants and their co-conspirators.

Manner and Means of the Conspiracy
9. The manner and means by which the defendants and their co-conspirators sought to accomplish the purpose of the conspiracy included, among others, the following:
a. HARRY and STOCKETT created, owned, and/or controlled the Video Doctor Network.
b. HARRY and STOCKETT, through the Video Doctor Network, recruited and hired health care providers, in the District of New Jersey and elsewhere, to order braces for Medicare beneficiaries.
c. HARRY, STOCKETT, and LOEWENSTERN solicited and received illegal kickbacks and bribes from Person A and others in exchange for the ordering, arranging for, and recommending the ordering of braces for Medicare beneficiaries.
d. HARRY, STOCKETT, LOEWENSTERN caused the Video Doctor Network to receive Medicare beneficiary information in order for Video Doctor Network health care providers to sign brace orders.
e. HARRY, STOCKETT, and others facilitated ordering of braces by refraining from charging a fee to Medicare beneficiaries or billing Medicare for purported telemedicine consultations conducted by the Video Doctor Network health care providers.
f. HARRY, STOCKETT, and others, through the Video Doctor Network, paid health care providers to order braces for Medicare beneficiaries that were procured through the payment of kickbacks and bribes, medically unnecessary, ineligible for Medicare reimbursement, and/or not provided as represented.
g. HARRY, STOCKETT, LOEWENSTERN, and others transferred brace orders to DME providers, Person A, recruiters, and others to support false and fraudulent claims to Medicare that were submitted by DME providers, located in the District of New Jersey and elsewhere.
h. HARRY, STOCKETT, LOEWENSTERN, and others facilitated and concealed the scheme by repeatedly making, or causing to be made, false and fraudulent representations to investors, lawyers, doctors, and others, including that beneficiaries enrolled in a membership program and paid AffordADoc for the telemedicine consultations; AffordADoc was "profitable" and "creating revenue of about $10 million per year, with 20% profit to the bottom line"; and that the Video Doctor Network, and its owners or investors, did not directly or indirectly receive money from DME providers or DME marketers.
i. HARRY, STOCKETT, and others concealed and disguised the payment and receipt of illegal kickbacks and bribes by causing them to be paid to the Video Doctor Network indirectly through nominee companies and bank accounts, opened by HARRY, STOCKETT, and others in nominee names both in the United States and in foreign countries, including the Dominican Republic. HARRY, STOCKETT, and others hid the existence of the foreign companies and bank accounts by making, or causing to be made, false statements to financial institutions and falsely reporting that they and others had no influence over foreign bank accounts.
HARRY, STOCKETT, and others also concealed and disguised the scheme by entering into sham contracts and agreements,labeling payments as "marketing" or "business process outsourcing" expenditures, and creating and maintaining false and fraudulent invoices.
k. HARRY, STOCKETT, LOEWENSTERN, and others falsified, fabricated, altered, and caused the falsification, fabrication, and alteration of DME orders and other records all to support claims for DME that were obtained through illegal kickbacks and bribes, medically unnecessary, not eligible for Medicare reimbursement, and/or not provided as represented.
1. HARRY, STOCKETT, LOEWENSTERN, and others caused the DME providers to submit, and cause the submission of, an amount in excess of approximately $424 million for DME orders that were obtained through illegal kickbacks and bribes, medically unnecessary, not eligible for Medicare reimbursement, and/or not provided as represented. Medicare paid these DME providers approximately in excess of $200 million for these claims.

Overt Acts
10. In furtherance of the conspiracy and in order to accomplish the objects thereof, Defendants HARRY, STOCKETT, LOEWENSTERN, and their co¬conspirators committed or caused the commission of the following overt acts in the District of New Jersey and elsewhere:
a. In or around March 2016, HARRY, STOCKETT, LOEWENSTERN, and others solicited and received an illegal kickback and bribe from Person A and others in the form of a wire to Video Doctor USA's bank account ending in x6514 in the approximate amount of $71,200.
b. In or around August 2016, HARRY, STOCKETT, LOEWENSTERN, and others solicited and received an illegal kickback and bribe from Person A and others in the form of a wire to Latin American Call Centers' bank account ending in x5414 in the approximate amount of $120,595.
11. In or around May 2017, HARRY, STOCKETT, LOEWENSTERN, and others solicited and received an illegal kickback and bribe from Person A and others in the form of a wire to Procall's bank account ending in x5289 in the approximate amount of $149,080.
12. In or around March 2019, HARRY, STOCKETT, and LOEWENSTERN solicited from Person A, who was located in the District of New Jersey and elsewhere, and received an illegal kickback and bribe in the form of an international wire to Procall's bank account ending in x5289 in the approximate amount of $171,501.
(All in violation of Title 18, United States Code, Section 371.)

COUNTS TWO THROUGH FIVE
(Soliciting and Receiving of Health Care Kickbacks)
D-1 CREAGHAN HARRY
D-2 LESTER STOCKETT
D-3 ELLIOT LOEWENSTERN
13. Paragraphs 1 through 5, and 9 through 12, of this Indictment are
re-alleged and incorporated by reference as though fully set forth herein.
14. On or about the dates set forth below, in the District of New
Jersey, and elsewhere, the defendants,CREAGHAN HARRY, LESTER STOCKETT, and ELLIOT LOEWENSTERN
did knowingly and willfully solicit and receive remuneration (including kickbacks and bribes), directly and indirectly, overtly and covertly, in cash and in kind, including by wire, as set forth below, in return for purchasing, leasing, ordering, and arranging for or recommending purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part by Medicare, as set forth below:

Count Date Originating Account Payee Amount
2 March 7, 2016 Company A Video Doctor USA $71,200
3 August 31, 2016 Company A Latin American Call
Centers $120,595
4 May 11, 2017 Company A Procall $149,080
5 March 6, 2019 Company A Procall $171,501

(All in violation of 42 U.S.C. § 1320a-7b(b)(1)(B) and 18 U.S.C. § 2.)

COUNT SIX
(Conspiracy to Commit Money Laundering)
D-1 CREAGHAN HARRY
D-2 LESTER STOCKETT
15. Paragraphs 1 through 5, and 9 through 12 of this Indictment are re-alleged and incorporated by reference as though fully set forth herein.
16. From in or around March 2016 through in or around the present, in the District of New Jersey, and elsewhere, the defendants, CREAGHAN HARRY,and LESTER STOCKETT did knowingly, combine, conspire, confederate, and agree with each other, and others known and unknown, to commit certain offenses against the United States in violation of Title 18, United States Code, Sections 1956, to wit:
a. to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, which transactions involved proceeds of specified unlawful activity, that is, a conspiracy to defraud the United States and pay and receive kickbacks relating to a health care benefit program, that is Medicare, knowing that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of specified unlawful activity, and that while conducting and attempting to conduct such financial transactions, knew that the property involved in the financial transactions represented the proceeds of some form of unlawful activity, in violaticin of Title 18, United States Code, Section 1956(a) (1) (B) (i);
b. to transport, transmit and transfer and attempt to transport, transmit and transfer a monetary instrument and funds from a place in the United States to and through a place outside the United States with the intent to promote the carrying on of specified unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(2)(A);
c. to transport, transmit, and transfer, and attempt to transport, transmit, and transfer a monetary instrument or funds involving the proceeds of specified unlawful activity, that is, a conspiracy to defraud the - United States and pay and receive kickbacks relating to a health care benefit program, that is Medicare, from a place in the United States to or through a place outside the United States, knowing that the funds involved in the transportation, transmission, and transfer represented the proceeds of some form of unlawful activity and knowing that such transportation, transmission, and transfer was designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of specified unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(2)(B)(i).
(All in violation of Title 18, United States Code, Section 1956(h).)
FORFEITURE ALLEGATIONS
(18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461; 18 U.S.C. §§982(a)(1) and (7) -- Criminal Forfeiture)
17. The allegations contained in Counts 1-6 of this Indictment are re-
alleged and incorporated by reference as though fully set forth herein for the purpose of alleging forfeiture against defendants,
CREAGHAN HARRY, LESTER STOCKETT, and
ELLIOT LOEWENSTERN pursuant to Title 18, United States Code, Sections 981 and 982, and Title 28, United States Code, Section 2461.
18. Pursuant to Title 18, United States Code, Section 981(a)(1)(C), together with Title 28, United States Code, Section 2461, upon being convicted of the crime charged in Count 1 of this Indictment, the convicted defendants shall forfeit to the United States any property, real or personal, which constitutes or is derived from proceeds traceable to the commission of the offense.
19. Pursuant to Title 18, United States Code, Section 982(a)(7), upon being convicted of the crimes charged in Counts 1 through 5 of this Indictment, the convicted defendants shall forfeit to the United States any property, real or personal, that constitutes or is derived, directly or indirectly, from gross proceeds traceable to the commission of the offense.
20. Pursuant to Title 18, United States Code, Section 982(a)(1), upon being convicted of the crime charged in Count 6 of this Superseding Indictment, the convicted defendants shall forfeit to the United States any property, real or personal, involved in the offense, or any property traceable to such property.

Substitute Assets Provision
21. If any of the above-described forfeitable property, as a result of any act or omission of the defendant:
a. cannot be located upon the exercise of due diligence;
b. has been transferred or sold to, or deposited with, a third person;
c. has been placed beyond the jurisdiction of the Court;
d. has been substantially diminished in value; or
e. has been commingled with other property which cannot be subdivided without difficulty;
it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 18 United States Code, Section 982(b), to seek forfeiture of any other property of defendants CREAGHAN HARRY, LESTER STOCKETT, and ELLIOT LOEWENSTERN up to the value of the forfeitable property described above.

Related court documents and information may be found on the website of the District of Mew Jersey at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

Link: https://www.justice.gov/opa/page/file/1153281/download:

U.S. Dept. of Justice
Unites States Attorney's Office - District of New Jersey
970 Broad Street, 7th Floor
Newark, NJ 07102
Telephone: 973-645-2700

https://www.justice.gov/usao-nj/contact-us