Complaint — United States v. Ashley Hoobler Parris (No. 8:20-mj-01475, M.D. Fla.)
Summary
Criminal complaint packet in United States v. Ashley Hoobler Parris, Case No. 8:20-mj-01475-T-SPF, in the U.S. District Court for the Middle District of Florida, Tampa Division, sworn May 14, 2020. It includes an order granting the government's motion to seal the complaint, the motion itself, the AO 91 complaint citing 18 U.S.C. § 1349 and 18 U.S.C. § 371 for conduct from October 2018 to March 30, 2020, an affidavit of HHS OIG Special Agent Derek Maloney, and an arrest warrant. The affidavit states that Hoobler, owner of Encore Health Enrollment, was recorded discussing schemes in which co-conspirators would receive kickbacks for providing beneficiary information and swabs to laboratories that would submit COVID-19 claims. It states that Company #1 submitted approximately $111 million in Medicare claims, of which Medicare paid approximately $38 million.
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“Complaint — United States v. Ashley Hoobler Parris (No. 8:20-mj-01475, M.D. Fla.).”
Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/complaint-no-8-20-mj-01475-m-d-fla-a42a36312d/
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UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
UNITED STATES OF AMERICA
V. CASE NO. 8:20-mj-01475-T-SPF
ASHLEY HOOBLER PARRIS
ORDER
The Motion to Seal Complaint and Related Documents filed by the
United States is hereby GRANTED, and the Clerk of Court is so directed.
The Clerk is further directed to seal the Complaint in this cause except
when necessary to provide certified copies of the Complaint to the United
States Attorney's Office;
It is further ordered that upon verbal request from the United States
Attorney's Office that the United States Marshals Service is to release a
certified copy of the arrest warrant to the case agent or other appropriate law
enforcement and/ or to the United States Attorney's Office without further
order of the Court.
It is further ordered that the United States may disclose the existence of
the Complaint in any search and seizure warrants to be executed in
conjunction with the arrest of the defendant(s).
The Clerk is further ordered to unseal all documents relating to the
Complaint without any further Order of the Court when any named defendant
is taken into custody.
DONE AND ORDERED at Tampa, Florida, this 14~ ay of May, 2020.
SEAN FLYNiY
United States Magistrate Ju4ge
2
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
UNITED STATES OF AMERICA
v. CASE NO 8:20-mj-01475-T-SPF
ASHLEY HOOBLER PARRIS
MOTION TO SEAL COMPLAINT
AND RELATED DOCUMENTS
Pursuant to Fed. R. Crim. P. 6(e)(4), and in the interests of law
enforcement, the United States of America by Maria Chapa Lopez, United
States Attorney for the Middle District of Florida, hereby moves the Court to
direct the Clerk to seal the Complaint request of the United States Attorney's
Office to the United States Marshals Service, without further order of the
Court.
The United States further requests that the Court's Order allow the
United States to disclose the existence of the Complaint in any subsequent
search and/ or seizure warrants which may be executed in conjunction with
the arrest of the defendant(s).
The United States further moves that the Court direct the Clerk to
unseal the documents described herein without further order when any named
defendant is taken into custody.
Respectfully submitted,
MARIA CHAPA LOPEZ
United States Attorney
By: -~--
Alejandro J. Salicrup
Department of Justice Trial Attorney
400 W. Washington Street, Suite 3100
Orlando, Florida 32801
Telephone: (407) 648-7500
Facsimile: (407) 648-7643
E-mail:a1ejandro.salicrup2@usdoj.gov
2
AO 91 (Rev. 11/11 ) Criminal Complaint
UNITED STATES DISTRICT COURT
for the
Middle District of Florida
United States of America )
Y. )
) Case No.
ASHLEY HOOBLER PARRIS
) 8:20-mj-01475-T-SPF
)
)
)
Defendant(s)
CRIMINAL COMPLAINT
I, the complainant in thjs case, state that the following is true to the best of my knowledge and belief.
On or about the date(s) of October 2018 to March 30, 2020 in the county of Hillsborough in the
Middle District of Florida , the defendant(s) violated:
Code Section Offense Description
18 U.S.C. § 1349 Attempt and conspiracy.
18 U.S.C. § 371 Conspiracy to commit offense or to defraud United States.
This criminal complaint is based on these facts:
Please see the affidavit.
0 Continued on the attached sheet.
Complainanl 's signature
Derek Maloney, Special Agent
Printed name and title
Sworn to before me /:ts~/!tfu~;BsePtce.
Date: 05/14/2020
dfie'ssignature
City and state: Tampa, Florida Hon. Sean Flynn, United States Magistrate
Primed name and title
STATE OF FLORIDA
CASE NO. 8:20-mj-01475-T-SPF
COUNTY OF HILLSBOROUGH
AFFIDAVIT IN SUPPORT OF CRIMINAL COMPLAINT
I, Derek Maloney, a Special Agent with the United States Department
of Health and Human Services, Office of the Inspector General ("HHS OIG"),
being first duly sworn, hereby depose and state:
AFFIANT'S BACKGROUND
1. I am a Special Agent with HHS OIG and have been since 2016. I
am currently assigned to the Tampa Field Office, where I investigate
violations of federal law, including health care fraud and conspiracies to
commit health care fraud. I have received extensive training in investigations
of fraud related to the United States health care system. I have participated in
numerous investigations involving health care fraud and conspiracies to
commit health care fraud. Furthermore, during these and other investigations,
I have participated in search warrants, conducted arrests, reviewed evidence of
fraud, and consulted with other agents and law enforcement officers who have
seized and/ or reviewed evidence of fraud.
2. This affidavit is written in support of a criminal complaint
charging ASHLEY HOOBLER PARRlS ("HOOBLER") with conspiracy to
commit health care fraud, in violation of Title 18, United States Code, Section
1349, and conspiracy to defraud the United States and to pay and receive
illegal health care kickbacks, in violation of Title 18, United States Code,
Section 371. Further, as will be discussed below, HOOBLER was captured on
recorded calls discussing schemes through which she and her co-conspirators
would receive kickbacks in exchange for providing beneficiary information
and swabs to laboratory owners and operators, who in tum would submit
COVID-19 claims for reimbursement.
3. The facts contained in this affidavit are based on my personal
knowledge and observations as well as facts relayed to me by other agents,
inspectors, and individuals with· knowledge of the events described herein.
4. Based on my training and experience and the facts as set forth in
this affidavit, there is probable cause to believe that HOOBLER and co-
conspirators, known and unknown, committed the crimes enumerated above
in the Middle District of Florida, and elsewhere.
5. This affidavit does not contain all the facts of this investigation
known to me or to other law enforcement personnel. Rather, it sets forth only
those facts necessary to establish probable cause in support of this criminal
complaint against HOOBLER.
2
THE MEDICARE PROGRAM
6. The Medicare Program ("Medicare") was a federally funded
program that provided free or below-cost health care benefits to certain
individuals, primarily the elderly, blind, and disabled. Medicare was
administered by the Centers for Medicare and Medicaid Services ("CMS"), a
federal agency under the United States Department of Health and Human
Services ("HHS"). Individuals who received benefits under Medicare were
referred to as Medicare "beneficiaries." Medicare was divided into multiple
parts with separate coverages: Part A covered hospital inpatient care; Part B
covered physicians' services and outpatient care; Part C covered Medicare
Advantage Plans; and Part D covered prescription drugs.
7. Physicians, clinics, and other health care providers, including
laboratories, all of which provided services to Medicare beneficiaries, were
able to apply for and obtain a "provider number." A health care provider that
received a Medicare provider number was able to file claims with Medicare to
obtain reimbursement for services provided to beneficiaries.
8. A Medicare claim was required to contain certain important
information, including: (a) the Medicare beneficiary's name and Health
Insurance Claim Number ("HICN"); (b) a description of the health care
benefit, item, or service that was provided or supplied to the beneficiary; (c)
the billing codes for the benefit, item, or service; (d) the date upon which the
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benefit, item, or service was provided or supplied to the beneficiary; and (e)
the name of the referring physician or other health care provider, as well as a
unique identifying number, known either as the Unique Physician
Identification Number ("UPIN") or National Provider Identifier ("NPI").
The claim form could be submitted in hard copy or electronically.
9. Medicare only paid for services that were medically necessary
and reasonable, and which were actually provided as represented. Medicare
did not pay claims that were procured based on the payment or receipt of
kickbacks and bribes.
10. Medicare was a "Federal health care program" as defined in Title
42, United States Code, Section 1320a-7b{f), and a "health care benefit
program" as defined in Title 18, United States Code, Section 24(b).
DIAGNOSTIC TESTING
11. Medicare Part B covered medical testing by clinical laboratories.
Some examples of medical tests that fell within the purview of Medicare Part
B included:
12. Cancer genomic ("CGX") testing: CGX testing used DNA
sequencing to detect mutations in genes that could indicate a higher risk of
developing certain types of cancers in the future. CGX testing was not a
method of diagnosing whether an individual presently had cancer.
4
13. COVID-19 testing: COVID-19 testing assessed whether an
individual had the novel coronavirus disease 2019, commonly referred to as
"COVID-19."
14. Respiratory pathogen panel ("RPP") testing: RPP tests detected
certain respiratory viruses and bacterial pathogens. The RPP test did not and
could not test for COVID-19. Medicare reimbursement rates for the RPP test
were approximately four times higher than Medicare reimbursement rates for
the COVID-19 test.
15. Generally, in order to have one of the above-described tests
conducted, an individual completed a buccal or nasopharyngeal swab, or a
respiratory sample, to collect a specimen, which specimen was then
transmitted to a laboratory for testing.
16. Medicare did not cover diagnostic testing that was "not
reasonable and necessary for the diagnosis or treatment of illness or injury or
to improve the functioning of a malformed body member." Title 42, United
States Code, Section 1395y(a)(l)(A). Except for certain statutory exceptions,
Medicare did not cover "examinations performed for a purpose other than
treatment or diagnosis of a specific illness, symptoms, complaint or injury."
Title 42, Code of Federal Regulations, Section 411. lS(a)(l). Among the
statutory exceptions Medicare covered were cancer screening tests such as
5
"screening mammography, colorectal cancer screening tests, screening pelvic
exams, [and] prostate cancer screening tests." Id.
17. If diagnostic testing was necessary for the diagnosis or treatment
of illness or injury, or to improve the functioning of a malformed body
member, Medicare imposed additional requirements before covering the
testing. Title 42, Code of Federal Regulations, Section 410.32(a) provided,
"All diagnostic x-ray tests, diagnostic laboratory tests, and other diagnostic
tests must be ordered by the physician who is treating the beneficiary, that is,
the physician who furnishes a consultation or treats a beneficiary for a specific
medical problem and who uses the results in the management of the
beneficiary's specific medical problem." Id. "Tests not ordered by the
physician who is treating the beneficiary are not reasonable and necessary."
Id.
18. Because CGX testing did not diagnose cancer, Medicare only
covered such tests in limited circumstances, such as when a beneficiary had
cancer and the beneficiary's treating physician deemed such testing necessary
for the beneficiary's treatment of that cancer. Medicare did not cover CGX
testing for beneficiaries who did not have cancer or lacked symptoms of
cancer.
6
RELEVANT INDIVIDUALS AND ENTITIBS
19. HOOBLER, also known as Ashley Parris and Ashley Hoobler,
was a resident of Gwinnett County, Georgia. HOOBLER's principal place of
residence was 2497 Young America Dr., Lawrenceville, Georgia, 30043.
20. Encore Health Enrollment, Inc. was a company incorporated
under the laws of Georgia with its principal place of business at HOOBLER's
residence, 2497 Young America Dr., Lawrenceville, Georgia, 30043. Encore
Health Enrollment was a company incorporated under the laws of Ohio with
its principal place of business at 730 Peachtree Street Northeast, #570,
Atlanta, Georgia, 30308, located in Fulton County, Georgia. Encore Health
Enrollment, Inc. and Encore Health Enrollment, hereinafter referred to
collectively as "Encore," purported to be a marketing company for genetic
testing services. At all times relevant to this affidavit, HOOBLER was the
owner, operator, and registered agent of Encore.
21. Company # 1 was a Medicare provider with its principal place of
business in Ridgeland, Mississippi, located in Madison County. In particular,
Company # 1 was a laboratory that purported to provide genetic testing
services to Medicare beneficiaries.
22. Cooperator #1 was a resident of Hillsborough County, Florida.
7
23. Medsymphony, LLC ("Medsymphony") was a company with its
principal place of business at 53 North Calibogue Cay Road, Hilton Head
Island, South Carolina, 29928, located in Beaufort County, South Carolina.
Meetmydoc LLC ("Meetmydoc") was a company with its principal place of
business at the same address as Medsymphony, 53 North Calibogue Cay
Road, Hilton Head Island, South Carolina, 29928. Medsymphony and
Meetmydoc, hereinafter referred to collectively as "Medsymphony,"
purported to provide telemedicine services 1 to health care providers and
beneficiaries.
24. Cooperator #2 was the owner ofMedsymphony.
PROBABLE CAUSE
25. HOOBLER was identified during an ongoing investigation of
false and fraudulent claims submitted to Medicare that sought reimbursement
for laboratory testing services that were (1) not medically necessary and (2)
procured through the payment of illegal kickbacks.
26. I lmow from my training and experience that certain Medicare
providers, including laboratories that conduct genetic testing, engage in fraud
by pushing CGX tests upon Medicare beneficiaries who do not have a medical
1
Telemedicine was a means via which doctors and patients could connect
with each other through the use of telecommunication technology. Telemedicine
companies provided telemedicine services to individuals by hiring doctors and
other health care providers. Telemedicine companies typically paid doctors a fee
to conduct consultations with patients.
8
need for these items or do not qualify for these tests under Medicare's rules.
The owners and operators of such laboratories often use doctors' groups and
marketing groups to aggressively market genetic testing kits to Medicare
beneficiaries, without regard to whether the tests are medically necessary or
whether the beneficiaries qualify for the tests under Medicare's rules. Based on
my training and experience, as an incentive to participate in the fraud, the
owners and operators of the laboratories conducting the testing pay illegal
kickbacks to the marketing groups in exchange for supplying beneficiaries for
testing, typically on a per-test basis. As part of this type of scheme, co-
)
conspirators who operate telemedicine companies also often provide doctors
to perform "consultations" with Medicare beneficiaries to justify the issuance
of a doctor's order for testing services. Based on my training and experience, I
know that in many cases, these doctors do not actually perform the
consultation with the beneficiaries, as they are required to do under
Medicare's rules and, in exchange for an illegal kickback, instead authorize
the tests without conducting valid examinations of the beneficiaries.
27. In this case, the investigation has revealed that Company #1: (a)
submitted claims to Medicare for CGX testing of Medicare beneficiaries who
were procured through bribes and kickbacks; and (b) created false, fictitious,
and fraudulent paperwork to conceal the bribery scheme from Medicare.
Between in or around January 2018 and in or around February 2020,
Company # 1 submitted approximately $111 million in claims to Medicare,· of
9
which Medicare paid approximately $38 million.
28. To submit CGX testing claims to Medicare, Company #1 needed
(a) beneficiaries with valid Medicare numbers who were willing t<? complete a
CGX swab; and (b) prescriptions issued by doctors for the genetic testing, also
known as doctors' orders ("D.0.s").
29. The investigation has revealed that HOOBLER's role in the
scheme was to obtain completed CGX swabs from Medicare beneficiaries and
D.0.s for diagnostic testing, and provide them to Company #1, so that
Company # 1 could submit false and fraudulent claims to Medicare. In
exchange, Company #1 paid HOOBLER's purported marketing company,
Encore, illegal kickbacks. Company #1 paid these kickbacks to Encore, and
HOOBLER, through Cooperator #1. HOOBLER obtained the beneficiaries
through other so-called marketers operating in the Middle District of Florida,
and elsewhere, who solicited beneficiaries for the genetic testing services
without regard to their medical necessity. These "marketers" targeted older
individuals at gyms, among other places. HOOBLER, together with
Cooperator #1, then obtained the D.O.s for CGX testing by paying illegal
kickbacks to Cooperator #2 and Med.symphony, his/her telemedicine
company.
10
A. Evidence of HOOBLER's Involvement in CGX Testing Fraud
30. In sum, HOOBLER and her co-conspirators would obtain
Medicare patient information and swabs by having Medicare beneficiaries
complete genetic test kits. HOOBLER and her co-conspirators would obtain
D.O.s for CGX testing for those beneficiaries by paying illegal kickbacks to co-
conspirators at telemedicine companies. HOOBLER also received illegal
kickbacks in exchange for sending the completed CGX swabs and D.0.s to a
laboratory for processing and billing.
31. Cooperator # 1 was charged with conspiracy to commit health
care fraud, in violation of Title 18, United States Code, Section 1349, and
conspiracy to defraud the United States and receive kickbacks, in violation of
Title 18, United States Code, Section 371. It is anticipated that Cooperator #1
will plead guilty to violating Title 18, United States Code, Section 371.
Cooperator # 1 is presently cooperating with the government.
32. Cooperator #1 informed the government that prior to his/her
cooperation, he/she was introduced to HOOBLER in the on or about October
2018 in order to develop a CGX "business deal." Cooperator # 1 then began
working with HOOBLER directly. Based on HOOBLER's statements to
Cooperator #1, Cooperator #1 understood HOOBLER to be the owner of
Encore, a marketing company for genetic testing.
11
33. Cooperator # 1 further explained that Cooperator # 1 had a pre-
existing relationship with Company # 1, a laboratory based in Mississippi.
Cooperator #1 introduced HOOBLER to Company #1 and brokered a verbal
agreement between them. Through that agreement, HOOBLER would
receive approximately 40% to 50% of the reimbursement Medicare paid out
for purported genetic testing services in exchange for each completed CGX
swab and D.O. that HOOBLER referred to Company #1. Cooperator #1
recommended that HOOBLER utilize Medsymphony for telemedicine
consults to obtain D.O.s, which she did. Cooperator #1 paid HOOBLER's
telemedicine fees directly to Medsymphony on her behalf, which was
approximately $100-$125 per test. 2 Medsymphony sent the invoices for
D.O.s directly to Cooperator #1. In return for his/her participation in this
arrangement, Cooperator # 1 would receive a portion of the illegal kickbacks
paid by Company #1 for completed CGX swabs and D.O.s that HOOBLER
and Cooperator # 1 referred to Company # 1.
34. Cooperator # 1 further told law enforcement that he/ she would
initially receive payments from Company #1 for completed CGX swabs and
2
Cooperator # 1 explained that his/her agreement with HOOBLER was
that Cooperator # 1 was responsible for paying kickbacks to Cooperator #2
and the owners and ·operators of Medsymphony in exchange for the D.O.s
from Medsymphony on behalf of HOOBLER. According to Cooperator #1,
Medsymphony originally charged approximately $100 per CGX test D.O., but
later increased that to approximately $125 per CGX test D.O.
12
D.O.s that HOOBLER submitted. Cooperator #1 stated that he/she would
then pay HOOBLER her percentage portion of the kickback received from
Company # 1. Cooperator # 1 clarified that he/ she stopped working with
HOOBLER in or around April 2019. Cooperator #1 stated that he/she
believed Company # 1 stopped submitting kickback payments around this
time. According to Cooperator #1, as of the time when Cooperator #1 began
cooperating, Company #1 still owed HOOBLER monies for completed CGX
swabs and D.O.s that HOOBLER had submitted to Company #1 prior to
April 2019.
35. On or about May 25, 2019, Cooperator #1 emailed HOOBLER
at AHOOBLER@ENCOREHEALTHENROLLMENT.COM. The email
was titled "ENC to date." The email contained an attached Excel spreadsheet
showing a listing of Medicare beneficiaries referred by HOOBLER, through
Encore, to Company #1 and amounts paid by Company #1 to HOOBLER in
exchange for those referrals to date. The spreadsheet listed total charges as
$1,629,256.93, with total payments as $782,968.92.
36. A preliminary review of Cooperator #l's banking records
corroborated Cooperator #1 's description of the scheme. Specifically, this
preliminary review showed that, before Cooperator # 1 began cooperating in
this investigation, Company # 1 made multiple wire payments to Cooperator
#1, and Cooperator #1 made multiple wire payments to HOOBLER. The
13
wire transfers from Cooperator #1 to HOOBLER identified to date total
approximately more than $100,000.
37. In or around February 2020, at the direction of law enforcement,
Cooperator # 1 began conducting consensually monitored and recorded phone
calls and text messages with HOOBLER. As described below, the recorded
calls and messages captured discussions with HOOBLER about illegal
kickback payments and the creation of fake, backdated invoices.
38. On or about February 25, 2020, Cooperator #1 and HOOBLER
spoke on the phone. During the call, Cooperator #1 asked HOOBLER if
Company #1 still owed her any monies for the swabs and D.O.s HOOBLER
submitted to Company # 1, which enabled Company # 1 to submit genetic test
claims to Medicare. HOOBLER indicated that Company #1 still owed her
money. Cooperator #1 told HOOBLER that if she put together a list of the
monies that Company #1 owed, he/she could try to get Company #1 to pay
the outstanding amounts. HOOBLER stated, "Oh, okay, yeah, we could do
that."
39. On or about March 4, 2020, Cooperator #1 and HOOBLER
spoke on the phone regarding the genetic testing claims for which Company
#1 still owed HOOBLER illegal kickbacks. During the call, HOOBLER stated
that she was preparing a spreadsheet listing Medicare beneficiaries she had
referred to Company # 1 for cancer genetic testing, but had not received
14
payment on. HOOBLER stated that the list included approximately 220
genetic tests. HOOBLER added that she could not recall what percentage of
each claim Company #1 had agreed to pay her. HOOBLER asked Cooperator
# 13 what percentage she should list in her spreadsheet. Cooperator # 1
suggested that HOOBLER should list it at 45% to 50% of the Medicare
reimbursement.
40. On or about March 4, 2020, HOOBLER emailed Cooperator #1
from AHOOBLER@ENCOREHEALTHENROLLMENT.COM. The email
was titled "Company #1." The email stated, " ... , The sheet is attached below
for Company #1. Thank you!! Cordially, Ashley HOOBLER, Vice President,
Encore Health Enrollment." Attached was a spreadsheet from HOOBLER
titled "[COMPANY #1] OUTSTANDING." The spreadsheet contained a list
of Medicare beneficiaries sent to Company # 1 from Encore, dates the genetic
tests were sent to the lab, and expected Medicare reimbursement amounts.
The spreadsheet contained the following totals:
60 personals $415,918.80 149 family $736,788.61
TOTAL= $1,152,707.41 50% = $576,353.70
41. On or about March 13, 2020, Cooperator #1 and HOOBLER
spoke on the phone about outstanding payments from Company #1.
Cooperator #1 told HOOBLER that Company #1 was going to need some
3
Cooperator # 1 is not a medical professional.
15
type of invoice to detail why they were paying her, because they were
concerned about an audit in the future and wanted to make sure they "paper
the file."
42. Cooperator #1 and HOOBLER agreed that they should create
invoices for their purported "marketing services," and that the invoices should
be broken down into hourly services. HOOBLER further agreed to submit the
fraudulent invoices. Later the same day, HOOBLER sent the hourly invoices
from Encore to Cooperator #1 using email address
AHOOBLER@ENCOREHEALTHENROLLMENT.COM.
43. On or about March 13, 2020, HOOBLER emailed Cooperator
#1 from AHOOBLER@ENCOREHEALTHENROLLMENT.COM. The
email was titled "new invoice." The email contained two fake hourly invoices
from Encore, which disguised percentage payments for Medicare
reimbursements from Company # 1. 4 The invoices were back dated to April
and May 2019. The total dollar amount combined for the invoices equaled
$576,350. This dollar amount is in line with the 50% = $576,353.70 listed on
the spreadsheet titled "COMPANY #1 OUTSTANDING" sent from
4
The invoices describe the services provided as "[p]roduct assembly,
order processing, product distribution, in-bound and out-bound shipping,
customer service, set up and maintenance of IT teams, tracking and reporting,
administrative assistance." However, as detailed herein, HOOBLER was
seeking kickback payments for sourcing Medicare beneficiaries.
16
AHOOBLER@ENCOREHEALTHENROLLMENT.COM to Cooperator
# 1 on March 4, 2020, referenced above in paragraph 41.
44. Cooperator #2, the owner ofMedsymphony, is also cooperating
with the United States. On or about September 27, 2019, Cooperator #2 was
indicted and charged in a 24-count indictment with offenses including
conspiracy to commit health care fraud and wire fraud, health care fraud,
conspiracy to defraud the United States and pay and receive kickbacks, and
receipt of kickbacks. On or about February 27, 2020, Cooperator #2 pleaded
guilty to conspiracy to commit health care fraud, in violation of Title 18,
United States Code, Section 1349. As part of his/her plea agreement,
Cooperator #2 agreed to cooperate with the government. Cooperator #2's
plea agreement contains a cooperation provision requiring that s/he cooperate
with the government and provide complete and truthful assistance.
45. Cooperator #2 has confirmed that he/ she had a business
relationship with Cooperator #1 and HOOBLER through which Cooperator
#2 would receive illegal kickback payments from Cooperator # 1 in exchange
for the approval of D.O.s authorizing CGX testing. Cooperator #2 also
indicated that HOOBLER knew about this kickback arrangement.
46. In addition, HHS OIG agents obtained a federal warrant to
search and seize HOOBLER's cellular phone. On or about April 10, 2020,
HHS agents served and executed said warrant. At that time, HOOBLER
17
voluntarily agreed to speak with the agents who seized her phone. Among
other things, HOOBLER confirmed that she was the owner of Encore.
HOOBLER further confirmed that Encore worked on genetic testing and had
an association with telemedicine doctors. HOOBLER told agents that she
worked with Cooperator #1 in sending CGX samples to Company #1.
According to HOOBLER, she received 20% of what Company #1 was
reimbursed by Medicare. HOOBLER also told the agents that she would input
information into Medsymphony's online portal and later download D. 0 .s
from Medsymphony's system. However, HOOBLER denied knowledge of
how Medsymphony was paid.
B. HOOBLER's Discussions of COVID-19 Related Fraud
47. Based on my training and experience, as well as the investigation
of this matter, I know that since the emergence of the COVID-19 pandemic,
certain laboratory owners and operators have been willing to pay illegal
kickbacks in exchange for completed COVID-19 and RPP tests. As described
below, HOOBLER was captured on recorded calls discussing schemes
through which she and her co-conspirators would receive kickbacks in
exchange for providing beneficiary information and swabs to laboratory
owners and operators, who in tum would submit claims for reimbursement.
48. Specifically, on a recorded call that occurred on or about March
18, 2020, HOOBLER told Cooperator #1 that she was working with a lab that
18
would pay a $100 kickback for every COVID-19 test submitted. During the
call, HOOBLER explained that the lab she was speaking to would pay the
$100 kickback if the "marketer" would provide the lab with a completed
COVID-19 test and a completed RPP test for each Medicare beneficiary that
was referred. HOOBLER described the RPP test as a "swab'' and the COVID-
19 test as a "mouth wash." As the call progressed, Cooperator #1 stated, " ...
the $100 is because you will be able to make it up on the RPP ... you are going
to be able to sell it because everyone wants the Corona test done "
HOOBLER responded, "exactly."
49. On a recorded call that occurred on or about March 23, 2020,
HOOBLER told Cooperator #1 that she was in contact with more than one
laboratory. HOOBLER explained that there was some difficulty in finding the
swabs needed to conduct the COVID-19 test. HOOBLER further explained
that one of the laboratories that she was in contact with ("Lab # 1") was
interested in paying a $125 kickback for each submission of a COVID-19 test
that was combined with an RPP test.
50. On a recorded call that occurred on or about March 25, 2020,
HOOBLER told Cooperator #1 that multiple labs that she was speaking with
were interested in proceeding with receiving COVID-19 tests combined with
RPP tests.
19
51. On a recorded call that occurred on or about March 26, 2020,
HOOBLER told Cooperator #1 that another lab that she was in
communication with ("Lab #2") could not bill for the COVID-19 test and the
RPP test at the same time because "they" put a stop to it "because they know
w~at people are doing." HOOBLER added that Lab #2 actually was affiliated
with multiple labs, and would look into whether they could split the COVID-
19 test and the RPP test for the same patient across more than one laboratory.
Based on my training and experience, as well as my knowledge of this
investigation, I understand that one reason to split the RPP test and the
COVID-19 test across more than one laboratory would be to disguise that both
tests are being performed at the same time.
52. On or about March 30, 2020, HOOBLER and Cooperator #1
discussed the COVID-19 scheme on the phone. This time, HOOBLER
informed Cooperator # 1 that Lab #2 was only interested in proceeding with
the RPP test and did not want to pay for COVID-19 tests. HOOBLER added
that Lab #2 could pay out a $150 kickback in exchange for each RPP sample
submitted to the lab. During the call, HOOBLER also discussed submitting
COVID-19 tests and RPP tests to Lab # 1, which was still interested in
receiving both tests in exchange for kickbacks. HOOBLER confirmed that Lab
# 1 was still interested in bundling the COVID-19 test with the RPP test.
20
CONCLUSION
53. Wherefore, based upon the above information, I respectfully
submit that there is probable cause to believe that, in the Middle District of
Florida and elsewhere, HOOBLER did knowingly and willfully commit
conspiracy to commit health care fraud, in violation of Title 18, United States
Code, Section 1349, and conspiracy to defraud the United States and to pay
and receive illegal health care kickbacks, in violation of Title 18, United States
Code, Section 371.
54. I declare under penalty of perjury that the foregoing is true and
correct to the best of my knowledge and belief this 14th day of May, 2020, in
Tampa, Florida.
FURTHER AFFIANT SAYETH NAUGHT
JJ~Md
Derek Maloney
Special Agent
HHS OIG
hy leh!,4h~
Subscribed and sworn before me'this 14 day of May, 2020 in Tampa, Florida.
d -
SEAm:~
UNITED STATES MAGISTRATE JUDGE
--
21
AO 442 (Rev. 11/1 1) Arrest Warrant
UNITED STATES DISTRICT COURT
for the
Middle District of Florida
United States of America
V. )
ASHLEY HOOBLER PARRIS ) Case No. 8:20-mj-01475-T-SPF
)
)
)
)
Defenda111
ARREST WARRANT
To: Any authorized law enforcement officer
YOU ARE COMMANDED to arrest and bring before a United States magistrate judge without unnecessary delay
(name ofperson 10 be arrested) ASHLEY HOOBLER PARRIS
who is accused of an offense or violation based on the following document filed with the court:
0 Indictment 0 Superseding Lndictment 0 Information 0 Superseding Information ~ Complaint
0 Probation Violation Petition 0 Supervised Release Violation Petition 0 Violation Notice O Order of the Court
This offense is briefly described as follows:
Attempt and conspiracy in violation of 18 U.S.C. § 1349. Conspiracy to committ offense or defraud United States in
violation of 18 U.S .C. § 371 .
Date: 05/14/2020
City and state: Tampa, Florida Sean P. Flynn, United States Magistrate Judge
Printed name and title
Return
This warrant was received on (date) _ _ _ _ _ _ _ , and the person was arrested on (date}
at (city and state)
Date:
Arresting officer ·s signature
Printed name and title
File and source
- File
- doj-file-1276866-complaint.pdf
- Size
- 517,888 bytes
- SHA-256
- 1c5c5d755b7fa1e9fc4762d2bcc68684f6dd59c3b5b590b858fceaa79de27301
- Our copy
- doj-file-1276866-complaint.pdf
- Original
- www.justice.gov