U.S. Attorney’s Office Collects More Than $22 Million in Criminal and Civil Actions in Fiscal Year 2022

CLEVELAND  – The U.S. Attorney’s Office for the Northern District of Ohio collected $22,160,718.79 in criminal and civil actions in Fiscal Year 2022.  Of this amount, $14,545,655.69 was collected in criminal actions, and $7,615,063.10 was collected in civil actions. 

Additionally, the staff of the Northern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $541,258.46 in cases pursued jointly by these offices.  Of this amount, $29,391.47 was collected in criminal actions, and $511,866.99 was collected in civil actions.         

“These figures represent monies returned to the United States through the hard work and outstanding effort of our employees and law enforcement partners,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “Whether we are representing the United States in a criminal or a civil action, we will always seek to protect the financial interests of the U.S. and victims in resolving these cases.”                         

Notable collections and forfeitures in Fiscal Year 2022 include:

CRIMINAL

US v. John Lazuka:  Lazuka offered his technical expertise in cryptocurrency to a death beneficiary who had inherited a significant amount of cryptocurrency but was unable to access it.  Instead of recovering the cryptocurrency for the benefit of the decedent’s estate, Lazuka transferred the cryptocurrency to his own accounts.  Lazuka pleaded guilty to wire fraud and restitution was ordered in the amount of $1,565,222.81 in February 2022.  This amount was paid in full for the benefit of the victim. 

US v. EO System Company, Ltd.:  EO System Company Ltd. is a South Korean company in the business of developing high-quality electronic optical devices.  EO System requested, and was denied, permission for an export license to ship an American rifle sight with an infrared detector.  EO System obtained the rifle sights without the appropriate license and committed wire fraud in the process.  EO System was fined $1,000,000 in November 2021.  This amount was paid in full.

US v. Jorge A. Martinez, M.D.:  Dr. Martinez was found guilty in 2006 of mail fraud, wire fraud, violations of the Controlled Substances Act, and health care fraud resulting in death.  Martinez was sentenced to life imprisonment and was ordered to pay over $13,000,000 in restitution.  In 2022, the United States collected $922,169.36 for the benefit of his victims through a garnishment proceeding. 

CIVIL

Stein Hospice Service, Inc.: Stein Hospice Service, Inc., a Sandusky-based hospice provider, paid $479,796.25 to resolve allegations that it provided medically unnecessary hospice services to unqualified Medicare beneficiaries and billed Medicare at a higher level for hospice care than was medically necessary. 

U.S. ex rel. Schmidt and Smith v. The Toledo Clinic, Inc., et al.: The Toledo Clinic, Inc. paid a total of $380,185.73 to resolve allegations that certain tests ordered for Medicare beneficiaries treated at the Cognitive Center at the Toledo Clinic were not reasonable and necessary because the tests were not ordered by either a physician or a non-physician practitioner. 

U.S. ex rel. Higgins v. Tudor Therapies, Inc. dba Tudor Physical Therapy: Tu-Dor Home Therapies, Inc. paid $232,739.30 to resolve allegations that it billed Medicare and Ohio Medicaid for physical therapy services that were not provided by a licensed physical therapist or a physical therapy assistant acting under the supervision of a physical therapist. 

The U.S. Attorneys’ Offices and the department’s litigating divisions are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.

While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

###