SEPTEMBER 01, 2011

Recent deaths due to prescription overdoses, and complaints from devastated loved ones and law enforcement agencies, led to a multi-agency investigation and search warrants served Thursday in the San Fernando Valley. 

Throughout the western United States, suspects were caught trying to fill bogus Oxycontin prescriptions that had been obtained from four Valley clinics. Others were caught trafficking in large quanities of Oxycontin filled using prescriptions obtained at the four clinics in Reseda, Northridge, and Van Nuys. 

Meanwhile, numerous legitimate patients said their identities had been stolen through medical care identity theft. They reported that prescriptions had been filled in their names, then billed to Medicare. The billings were credited against the legitimate Medicare patients medical histories, resulting in records indicating that they were using part of their limited allowance. The clinics were connected to incidents or investigations in nearly every large county in California, as well as Arizona, Nevada, Oregan, Utah and Washington.

The investigation includes allegations of false claims resulting in medicare fraud, and illegal kickbacks to medicare beneficiaries who sold the use of their medicare card to presecription drug dealers. Medicare was also billed for medical services that were never performed. "The majority of the criminal activity involved the prescription drug Oxycontin," said Sgt. Steve Opferman, Los Angeles County Sheriff's Department. "Oxycontin is an opiate and highly addictive prescription pain killer." We take this very seriously. People are dying.

Sgt. Opferman, assigned to the multi-jurisdicational Health Authority Law Enforcement (HALT) Task Force said, "The investigation included undercover investigators who purchased prescription drugs just by presenting false identification at the clinics. No medical examinations were ever performed." Search warrants were conducted Thursday, September 1, at four "prescription mills" (clinics) by the task force, and the clinics were shut down. Two clinics were located on the 7000 block of Reseda Blvd in Reseda, one on the 8600 block of Reseda Blvd. in Northridge, and one on the 8100 block of Van Nuys Blvd. in Van Nuys. Two arrests were made at the Northridge clinic.

One suspect was arrested for possession of 23 vials including over 2,000 pills with a street value of about $40,000.00. A second suspect was arrested with false identification used to fill fraudulent prescriptions. Their names were not released.

The HALT Task Force includes investigators with the Los Angeles County Sheriff's Department, Los Angeles Police Department, Los Angeles County Department of Health, California Department of Health Care Services, and U.S. Health and Human Services Department.

Also involved in this major investigation were investigators with the Federal Bureau of Investigation, Internal Revenue Service, Monterey Park Police Department, California Department of Justice, California Medical Board, California Labor Commission, and Drug Enforcement Administration.

While serving the search warrant, investigators collected computers, financial records and patients records.
Evidence and facts are being reviewed, including possible allegations against multiple doctors, clinic managers, office employees, cappers (recruiters), and drug dealers. The charges could include felony state and federal offenses ranging from drug trafficking to health care fraud and tax fraud. (213) 989-7039 - Health Authority Law Enforcement Task Force

Partner to prevent or report crime by contacting your local sheriff’s station or police department. Or, if you wish to remain anonymous, call “LA Crime Stoppers” by dialing 800-222-TIPS (8477), texting the letters TIPLA plus your tip to CRIMES (274637), or using the website lacrimestoppers.org

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(Related)

FBI News Release

Health care related search warrants served. One susp. arrested at home in Encino.

Federal and state search warrants were served today in the San Fernando Valley by investigators from multiple agencies, working jointly. The investigation, which is ongoing, involves allegations of various health care-related violations at, potentially, the state and federal level. One individual, Anush Davtyan, was arrested at her residence in Encino, pursuant to a federal arrest warrant, however the document charging Davtyan, has been sealed by the court, due to the sensitive nature of the ongoing investigation.

State search warrants were also executed at four health care facilities, where investigators seized evidence related to the ongoing investigation. The agencies participating in this investigation include: IRS; FBI; Los Angeles County Sheriff's Department; Department of Health and Human Services; The California Bureau of Narcotics Enforcement; and the DEA.

Laura Eimiller
FBI Press Relations
Los Angeles Field Office
310 996-3343
310 420-6441
http://losangeles.fbi.gov
www.labankrobbers.org

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More information from the Los Angeles County Sheriff's Department:

* Prescription drugs (including Oxycontin) worth millions to dealers

*** HALT***
Globally, the Health Authority Law Enforcement Task Force (HALT) deals with different issues in different countries. Organized crime groups from Russia, Armenia, Nigeria and the Philippines are the most common organized crime groups associated with health care fraud. Criminals from Middle Eastern countries are also prevalent in these crime groups. The task force mainly deals with stolen health care funds, smuggled pharmaceuticals, and counterfeit drugs and money. More about HALT:

http://www.lasdhq.org/sites/YIR/2005/visuals/1617.pdf

* Safe Drug Drop-Off Program available at your local Los Angeles County Sheriff's Station 24 hours a day, 7 days a week:

http://file.lacounty.gov/lasd/cms1_152501.pdf