Information — United States v. Carlos Belone (S.D. Fla.)
Summary
A criminal information in United States v. Carlos Belone, No. 0:21-cr-60003-RAR, in the U.S. District Court for the Southern District of Florida, entered on the docket January 11, 2021 as Document 24. Count 1 charges conspiracy to commit health care fraud under Title 18, United States Code, Section 1349, alleging kickbacks for doctors' orders for braces and claims to Medicare through R&S of about $5,695,977, with reimbursement of about $2,535,941. Count 2 charges a false statement to a financial institution under Section 1014, alleging a PPP loan application for $22,500 for R&S Pharmacy that stated an average monthly payroll of $9,000. The information identifies the defendant as a co-owner and operator of R&S. Attached are a certificate of trial attorney, a penalty sheet, a bond recommendation of $250,000 and an unsigned waiver of indictment form.
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“Information — United States v. Carlos Belone (S.D. Fla.).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-0-21-cr-60003-dkt-24-s-d-fla-b25fab2ee1/
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Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 1 of 14
Jan 11, 2021
UNITED STATES DISTRICT COURT
SO U TH E RN D ISTR ICT O F FL O R ID A
21-60003-CR-RUIZ/STRAUSS
C ase N o.
18U.S.C.j1349
18U.S.C.j1014
18U.S.C.j982
UNITED STATES OF AM ERICA
VS.
CARLOSBELONL
Defendant.
/
IN FO R M A TIO N
The United StatesA ttom ey charges:
G ENER AL AL LE G A TIO N S
A ta11tim esm aterialto this lnform ation:
The M edicare Proaram
The M edicare Program (ûiMedicare'') was a federalhealth care progrnm that
provided free orbelow-costhealth care benefitsto individualsw ho w ere sixty-five yearsofage or
older or disabled. The benefits available under M edicare w ere governed by federalstatutes and
regulations.TheUnited StatesDepartmentofHea1th and Htlman Services(t$HHS''),through its
agency the Centerfor M edicare and M edicaid Services (tûCM S''),oversaw and administered
M edicare. Individuals w ho received benefits under M edicaze w ere com m only referred to as
M edicare ttbeneficiaries.''
M edicare w asa Eûhealth care benetitprogrnm ,''as defined by Title 18,U nited States
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 2 of 14
Code,Section24(b).
3. M edicarewassubdivided into multipleprogram ût
parts.'' M edicarePartA covered
health care servicesprovided by hospitals,skilled nursing facilities, hospices,and hom e health
agencies. M edicare Part B covered physician selwices and outpatient care, including an
individual's access to durable medical equipment (CtDM E''),such as orthotic devices and
w heelchairs.
Durable M edicalE quipm ent
4. Orthotic deviceswere a type ofDM E thatinduded rigid and semi-rigid devices,
such askneebraces,backbraees,shoulderbraces,andwristbraces(collectively,ûûbraces').
D M E com panies,physicians,and otherhealth care providersthatprovided services
to M edicare beneficiarieswere referred to asM edicare tûproviders.'' To participate in M edicare,
providerswererequired to submitan application in which theprovidersagreed to complywith all
M edicr e-relatedlawsand regulations. lfM edicare approved aprovider'sapplication,M edicare
assigned the provider a M edicare Ctprovider num ber.'' A health care provider w ith a M edicare
providernum bercould file claim sw ith M edicare to obtain reim bursem entforservicesrendered to
beneficiaries.
Enrolled M edicare providersagreed to abideby the policies,procedures,rules,and
regulations govem ing reimbursem ent. To receive M edicaze ftmds, erlrolled providers were
required to abide by the Anti-K ickback Statute and other law s and regulations. Providers w ere
given accessto M edicare m anuals and servicesbulletinsdescribing billing procedures,rules, and
regulations.
M edicare reim bursed D M E com panies and otherhealth care providers for services
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 3 of 14
and item srendered to beneficiaries. To receive paym entfrom M edicare,providerssubmitted or
caused the subm ission ofclaim sto M edicare,eitherdirectly orthrough abilling company.
8. A M edicare claim forDM E reim bursem entwasrequired to setforth,am ong other
things,thebeneficiary'snam eand unique M edieare identitk ation num ber,the equipm entprovided
tothebeneticiary,thedatetheequipmentwasprovided,the costofthe equipm ent,and thename
and unique physician identification num ber of the physician w ho prescribed or ordered the
equipm ent.
A claim forD M E subm itted to M edicarequalified forreim bursem entonly ifitw as
medically necessary forthetreatmentofthe benetkiry'sillnessorinjury and prescribed by a
licensed physician,and accom panied by a com pleted prescription forbraces and otherM edieare-
requireddocuments(collectivelyreferredtoasççdoctors'orders'').
The Sm allB usiness A dm inistration
10. The United States SmallBusiness Administration (ç:SBA'') was an executive
branch agency ofthe United Statesgovernmentthatprovided supportto entrepreneursand sm all
businesses. The m ission of the SBA w as to m aintain and strengthen the nation's econom y by
enabling the establishm ent and viability of sm all businesses and by assisting in the econom ic
recovery ofcom m unities after disasters.
A spartofthiseffort,the SBA enabled and provided forloansthrough banks,credit
unions,and otherlenders.These loans had governm ent-baeked guarantees.
The Pavcheck Protection Prozram
12. TheCoronavinzsAid,Relief,andEconomicSecurity(ûûCAltES'')Actwasafederal
law enacted in or aboutM arch 2020 and w as designed to provide em ergency financialassistance
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 4 of 14
tothem illionsofAmericanswho were sufferingthe econom ic effectscaused by the COV 1D-19
pandem ic.
13. One source ofreliefthatthe CARES Ad provided forwasthe authorization ofup
to $349 billion in forgivable loansto sm allbusinessesforpaytoll,mortgage interest,rent/lease,
andutilities,throughaprogram referredtoasthePaycheckProtectionProgram (ûtPPP'').InApril
2020,Congressauthorizedup to $310 billion in additionalPPP funding.
The PPP allowed qualifying sm allbusinessesand other organizations to receive
PPP loans. Businesses w ere required to use PPP loan proceeds for payroll costs,interest on
m ortgages,rent,and utilities. The PPP allow ed the interest and principal on the PPP loan to be
entirely forgiven ifthebusinessspentthe loan proceedson these expense item swithin a designated
period oftim e and used a certain percentage ofthe PPP loan proceeds forpayrollexpenses.
15. The amount of a PPP loan that a small business was eligible to receive was
determ ined by the number ofemployees employed by the business and the business'saverage
m onthly payrollcosts.
16. ln orderto obtain a PPP loan,a qualifying business w asrequired to subm ita PPP
loan application,which wassigned by an authorized representativeofthebusiness.ThePPP loan
application required the business (through its authorized representative) to acknowledge the
program rulesand m ake certain affirmative certitications. In the PPP loan application,the sm all
business(through itsauthorizedrepresentative)had to state,among otherthings,its(a)average
monthlypayrollexpensesand(b)numberofemployees.Thesefigureswereusedtocalculatethe
am ountofmoneythesm allbusinesswaseligibleto receivetmderthePPP.In addition,businesses
applying for a PPP loan had to provide docum entation show ing theirpayrollexpenses.
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 5 of 14
TheSBA oversaw thePPP.However,individualPPP loanswereissued byprivate,
approved lenders who reeeived and processed PPP applications and supporting documentation,
and then m ade loans using the lenders'own funds,which were 100% guaranteed by the SBA .
D ata from the application,including infonnation aboutthe borrow er, the totalam ountofthe loan,
and the listed number ofemployees,wastransm itted by the lenderto the SBA in the cotlrse of
processing the loan.
18. Bank 1w asa U .S.bank w hosedepositsw ere insured by the FederalD eposit
InsuranceCorporation (GTDlC'').
The D efendantand R elated Entities
19. R&SPharmacylnc.(û$R&SPharmacy'')wasaFloridacoporationwithitsprincipal
place ofbusinessin Broward County in theSouthern DistrictofFlorida.
R&S DM E Services,LLC (ûçR&S DM E''7collectively with R&S Pharmacy,
ûûR&S'')wasaFloridalimitedliability company with itsprincipalplaceofbusinessin Broward
County in the Southern D istrictofFlorida.
DefendantCA R LO S BELO N E ,a residentofBrow r d County,Florida,w as a co-
ownerand operatorofR& S.
COUNT 1
C O N SPIM C Y TO C O M M IT H EA LTH C AR E FM U D
(18U.S.C.j1349)
Paragraphs 1through 9 and 19 through 21 ofthe G eneralA llegatonssed ion ofthis
lnform ation are realleged and incop orated by reference asthough fully setforth herein.
From in or around M arch 2018,and continuing through in or around July 2020,in
Broward County,in theSouthem DistrictofFlorida,and elsewhere,thedefendant,
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 6 of 14
CA R LO S BELO N E ,
didknowinglyandwillfully,thatis,withtheintenttofurthertheobjed oftheconspiracy,combine,
conspire,confederate,and agree with othersknown and unknown to the United StatesAtlorney,
to executea schem eand artificeto defraud ahealth carebenefitprogram affecting comm erce, as
àefinedinTitle18,UnitedStatesCode,Section24(b), thatis,M edicare,and to obtain,by means
ofm aterially false and fraudulentpretenses,representations, and prom ises,m oney and property
owned by,and underthe custody and controlofsaid health carebenefitprogrnm , in connection
with the delivel'
y of and payment for health care benefits, item s,and services, in violation of
Title 18,United StatesCode,Section 1347.
Purpose ofthe C onspiracv
3. Itwas a pup ose ofthe eonspiracy forthe defendantand his co-conspirators to
unlawfullyenrichthemselvesby,amongotherthings:(a)payingkickbacksandbribesinexchange
for signed dod ors' orders preseribed to M edieare benttk iaties for braees that w ere m edieally
unnecessary,noteligibleforreimbursement,andnotprovided asrepresented;(b)submittingand
causingthesubmissionoffalseandfraudulentclaimstoM edicare;(c)concealingandcausingthe
concealmentoffalseandfraudulentclaimstoM edicare;and(d)divertingfraudproceedsfortheir
personaluse and benetit,theuseand benefitofothers,andto furtherthe fraud.
M anner and M eansofthe C onspiracv
The m anner and m eans by which the defendant and his co-conspirators sought to
accomplishtheobjectandpurposeoftheconspiracyincluded,amongotherthings,thefollowing:
4. CA RL O S BELO N E and his co-conspirators falsely certitied to M edicare that
R&S would complywith allfederallawsand regulations,indudingthattheyw ouldnotknowingly
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 7 of 14
presentand eauseto bepresented afalseand fraudulentclaim forpaymentby afederalhealth care
program and thatthey w ould com ply w ith the federalAnti-K ickback Statute.
C AR IUO S BELO N E and his co-conspirators obtained access to thousands of
M edicare beneficiariesby paying kickbacks and bribes to purported (ûm arketers''who targeted
beneticiaries with telem arketing campaigns and induced the beneficiaries to acceptbraces that
Were nOtm edically necessary.
6. CA R LO S BEL O NE and his co-conspirators paid kickbacks and bribes in
exchange for doctors'ordersforbraces. ln m any instances,the bracesordered forthese reeruited
beneficiariesw ere m edically uzm ecessary. The doctors w ho signed the doctors'orders forbraces
purchased by defendantand hisco-conspiratorsoflen signed them regardlessofm edicalnecessity,
intheabsenceofapre-existingdodor-patientrelationship,withoutaphysicalexam ination,and/or
frequently based solely on a shorttelephonic conversation orwithoutany conversation with the
M edicare beneticiary.
7. C A RL O S B ELO N E and his co-conspirators disguised the nature and source of
these kickbacks and bribes through fraudulent invoices that falsely described the paym ents as
com pensation for tûm arketing''orsim ilarservices.
8. C AR I,O S BELO N E and hisco-conspirators,through R& S,subm itted and caused
the subm ission of false and fraudulent elaim s to M edicare in the approximate am ount of
$5,695,977,and received M edicare reimbursementin the approximateam ountof$2,535,941,for
braces that were:(a)procured through the payment ofkickbacks and bribes'
,(b) medically
unnecessaryandineligibleforM edicarereimblzrsement;and/or(c)notprovidedasrepresented.
CA R LO S BELO N E and his co-eonspirators diverted fraud proceeds from the
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 8 of 14
schem efortheirpersonaluseand benefit,theuse and benetitofothers,andto furtherthefraud .
Allin violation ofTitle 18,United StatesCode,Sedion 1349.
COUNT 2
FAL SE STA TEM EN TS TO A FINA N C IA L IN ST ITU TIO N
(18U.S.C.j1014)
Pazagraphs 10 through 19 and paragraph 21 ofthe GeneralAllegatonssection of
thisInform ation arerealleged and incorporated by referenceasthough fully setforth herein.
2. On oraboutApril8,2020,inBroward County,in the Southern DistrictofFlorida,
and elsewhere,the defendant,
C AR LO S BE LO N E,
did knowingly m ake a false statementforthe purpose ofintluencing the actions ofa financial
institution,thatis,Bank 1,theaccountsofwhich were insured by theFederalDepositlnsurance
Corporation,in connedion with aPPP loan applicationintheam ountof$22,500 on behalfofR& S
Pharmaey,in thatthedefendantrepresented in theloan applieation subm itted to Bank 1thatR& S
Pharmacy had an averagem onthly payrollof$9,000 and thatR& S Phannacy wasnotengaged in
any activity thatwasillegaltmderfederal,state,and locallaw,when in truth and in fact,asthe
defendantwellknew,R& S Pharm acy did nothave apayrollof$9,000 and R& S Phannacy was
engaged in activity that w as illegalunder federal,state and local law ,in violation of Title 18,
United StatesCode,Sedions 1014 and 2.
8
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 9 of 14
FO R FEITU R E
(18U.S.C.j982)
Theallegationsofthislnform ation arehereby re-alleged and bythisreferencefully
ineorporated herein forthe purpose ofalleging forfeitureto theUnited Statesofeertain property
in w hich the defendant,CA R I,O S BELO N E ,hasan interest.
2. Upon conviction oftheviolation ofTitle 18,United StatesCode, Section 1349 or
1014,as alleged in this Inform ation,the defendantshallforfeitto the U nited Statesany property,
real or personal,which constitutes or is derived,directly or indirectly,from gross proceeds
traceable to the comm ission ofthe offense,pursuantto Title 18,United States Code, Section
982(a)(7).
3. Ifanyoftheproperty subjed toforfeiture,asaresultofany ad oromission ofthe
defendant:
a. cannotbe located upon the exercise ofdue diligence'
,
hasbeen transferred,sold to,ordeposited w ith,a third party;
hasbeenplacedbeyondthejurisdictionofthecourt;
d. hasbeen substantially dim inished in value;or
C. hasbeen com mingled with otherproperty which cannotbe divided without
difficulty,
theUnited Statesshallbe entitled to forfeiture ofsubstituteproperty pursuantto Title 21, United
StatesCode,Section853(p).
9
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 10 of 14
Allpursuantto Title 18,U nited StatesCode, Sedion982(a)(7),andtheprocedm essetforth
in Title 21,United StatesCode,Sedion 853,as ineorporated by Title 18,United States Code
Section 982(b)(1).
;& .
pW AkAFA O ORSHAN
UN IIED ST T S ATTORNEY
SOIJTHERN DISTRICT OF FLORIDA
D AN IEL K AH N ,A CTIN G CH IEF
CRIM INA L DIV ISION ,FRAU D SECTION
U .s.D EPA RTM EN T O F JU STICE
A LLA N M ED FN A
D EPUTY CHIEF
CRIM IN A L D IV ISIO N ,FR AU D SECTION
U .S.D EPAR TM EN T O F JU STICE
By: SARAC
-LINGAN 6 n
TRIA L A TTO RN EY
CR IM IN A L D IVISION ,FR AU D SECTION
U .s.DEPA RTM EN T OF JU STICE
10
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 11 of 14
UNITED STATES DISTRICT CO URT
SO UTHERN DISTRICT O F FLO RIDA
UNITED STATES OF AM ERICA CASE NO .
CERTIFICATE O F TRIA L ATTO RNEY.
CARLOSBELONE,
Superseding CaseInform ation:
Defendant. /
CourtDivision:(selectOnel New defendanttsl Yes
M iami K ey W est N um berofnew defendants
z FTL -- W PB FTP Totalnum berofcounts
lhavecarefully considered the allegations ofthe indictment,the numberofdefendants, thenumberof
probablewitnessesand the legalcomplexitiesoftheIndictment/lnformation attachedhereto.
2. lam aware thatthe information supplied on this statementwillbe relied upon by the Judges ofthis
Courtin setting theircalendars and scheduling criminaltrials underthe mandate ofthe Speedy Trial
Act,Title28 U.S.C.Section 3161.
lnterpreter: (YesorNo) No
Listlanguage and/ordialect
4. Thiscase willtake 0 daysforthepartiesto tl'
y.
Pleasecheck appropriatecategol.
y and typeofoffense listedbelow:
(Checkonlyone) (Checkonlyone)
l 0 to 5 days ?' Petty
11 6 to 10 days M inor
lIl llto 20 days M isdem.
IV 21to 60 days Felony
V 61daysand over
6. HasthiscasepreviouslybeentiledinthisDistrictCourt? (YesorNo) No
Ifyes:Judge Case No.
(Attachcopy ofdispositiveorder)
Hasacomplaintbeenfiledinthismatter? (YesorNo) YeS
lfyes:M agistrate CaseNo. 20-6264-5N0W
Relatedm iscellaneousnum bers:
Defendantts)in federalcustodyasof
Defendantts)in statecustodyasof
Rule20 from theDistrictof
lsthisapotentialdeathpenaltycase?(YesorNo) No
Doesthiscase originatefrom amatterpending in theCentralRegion oftheU .S.Attorney'sOffice
priortoAugust9,2013(M ag.JudgeAlicia0.Valle)? Yes No ?'
8. Doesthiscase originatefrom a matterpending in theN orthern Region oftheU.S. Attorney'sOftice
priortoAugust8,2014 (M ag.JudgeShaniekMaynard)? Yes No ?'
9. Doesthiscase originatefrom amatterpending in theCentralRegion oftheU .S.Attorney'sOffice
priortoOctober3,2019(M ag.JudgeJared Strauss)? Yes No z
*
SARA c INGAN
DoJTltlAL ATTORNEY
*penalty sheetts)attached COURT ID NO.A5502508
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 12 of 14
U N ITE D STA TES DISTR IC T C O U R T
SO U TH ER N DISTR ICT O F FLO RID A
PEN ALTY SH EET
D efendant's Nam e:CA RLO S BELON E
Case N o:
Count#1:
Consniracy to Com m itHea1th Care Fraud
Title 18sU nited States Code.Section 1349
*M ax.Penalty: Ten (10)years'imprisonment
Counts #2:
False Statem entsto a Financiallnstitution
Title l8.U nited StatesCodesSection 1014
*M ax.Penalty: Thirty(30)years'imprisonment
Count#:
*M ax.Penalty:
Count#:
*M ax.Penalty:
WR efers only to possible term ofincarceration,does notinclude possible fines,restitution,
specialassessm ents,parole term s,or forfeituresthatm ay be applicable.
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 13 of 14
U N IT ED STA T ES D ISTR IC T C O UR T
SO UTH ER N DISTRICT O F FLO RID A
CA SE N UM BER :
BO ND R EC OM M EN DATION
DEFEN DANT:CARLOS BELONE
$250,000,10% Cash Bond
(PersonalSurety)(CorporateSurety)(Cash)(Pre-TrialDetention)
By: :
Sar Cling n,DOJTrialAttorney
LastKnow n A ddress:
W hatFacility-
.
Agentts): SpeciylAgentJpnBeny
(FBl) (SECRET SERVICE) (DEA) (lRS) (lCE)(OTHER
Case 0:21-cr-60003-RAR Document 24 Entered on FLSD Docket 01/11/2021 Page 14 of 14
AO 455(Rev.01/09)Waiverofanlndictment
U NITED STATES D ISTRICT C OURT
forthe
SouthernDistrictofFlorida
United StatesofAmerica )
V. ) CaseNo.
CARLOS BELO NE, )
)
Defendant )
W AIVER OF AN INDICTM ENT
IunderstandthatIhavebeen accused ofone ormore offensespunishableby imprisonmentformorethan one
year. Iwasadvised in open courtofm y rightsand thenature oftheproposed chargesagainstme.
Afterreceivingthisadvice,Iwaive my rightto prosecution by indictm entand consenttoprosecution by
infonnation.
Printednametp.flc
-
/è??ltzn/'
sattorney
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