Indictment — United States v. Michael Stein and Leonel Palatnik, Southern District of Florida (Document 1)
Summary
An indictment entered on the docket May 25, 2021 as Document 1 in United States v. Michael Stein and Leonel Palatnik, Case 1:21-cr-20321-CMA, in the U.S. District Court for the Southern District of Florida. Count 1 charges both defendants with conspiracy to defraud the United States and to pay and receive kickbacks under 18 U.S.C. § 371. The grand jury charges that laboratories owned by Panda paid kickbacks to entities controlled by Stein, including under a $50,000-per-month services agreement, in exchange for arranging telemedicine providers to order genetic testing for Medicare beneficiaries. It states that during the COVID-19 public health emergency the laboratories submitted more than approximately $73 million in claims and Medicare paid more than $51 million. Penalty sheets list the kickback counts against each defendant.
Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Indictment — United States v. Michael Stein and Leonel Palatnik, Southern District of Florida (Document 1).”
Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/indictment-no-1-21-cr-20321-dkt-1-s-d-fla-c94b46e83c/
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Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 1 of 20
May 25, 2021
U NITED STATE S D ISTR ICT C O UR T
SOUTH ERN DISTRICT OF FLORIDA
21-20321-CR-ALTONAGA/TORRES
C ase N o.
18U.S.C.j371
42 U.S.C.j1320a-7b(b)(1)(B)
42U.S.C.j1320a-7b(b)(2)(B)
18U.S.C.j2
18U.S.C.j982(a)(7)
UNITED STATES OF AM ERICA
VS.
M ICH AEL STEIN and
LE ON EL PA L ATN IK ,
D efendants.
/
IN DICTM EN T
TheGrand Jury chargesthat:
G EN ER AL A LLEG ATIO N S
Ata11tim esm aterialto thisIndictm ent:
The M edicare Prozram
TheM edicareProgrnm (tiM edicare'')wasafederallyfundedprogram thatprovided
âee or below-costhealth care benefits to certain individuals,prim arily the elderly,blind,and
disabled.ThebenefitsavailabletmderM edicarew eregovem edby federalstatm esandregulations.
TheUrlited StatesDepartmentofHea1th and Human Selwices(1ûHHS''),through itsagency,the
Centersfor M edicare and M edicaid Services (:&CM S''),oversaw and administered M edicare.
lndividuals w ho received benefits tm der M edicare w ere com m only referred to as M edicare
Gçbeneficinries.''
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 2 of 20
M edicarew asalGhealth carebenefitprogram ''asdefinedby Title 18,United States
Code,Section 24(b),and açTederalhealth careprogrnm''asdefned by Title42,United States
Code,Section 1320a-7b(t).
M edieare covered differenttypesofbenefits,which were separated into different
program çlparts.''M edica eGTa,
I-tA''coveredhealth servicesprovided by hospitals,skilledntlrsing
facilities,hospices,andhomehealth agencies.M edicareGT aI'tB''wasam edicalinstlratweprogm m
that covered,nm ong other things,medical services provided by physicians,m edical clinics,
laboratories, and other qualified health care providers,such as office visits,m inor surgical
procedures,and laboratorytesting,thatwerem edicallynecessary and orderedby licensed m edical
doctorsorotherqualifiedhealth careproviders.
4. Physicians,clinics, and other health care providers, including laboratodes, that
îded servicesto beneficiadesw ere ableto apply forand obtain a qqprovidernum ber.,,A jw alth
provl .
care providerthatreceived a M edicareprovidernumberwasableto file claim swith M edicareto
obtainreimbtlrsem entforservicesprovided tobeneficiaries.
A M edicare claim w asrequired to contain certain im portantinform ation,including'
.
(a)thebeneficiary'snameandHea1thlnstlranceClaim Ntlmber(&GHICN'');(b)adescriptionofthe
healthcarebenefit,item,orservicethatwasprovidedorsuppliedtothebeneficiary;(c)thebilling
codesforthebenefit,item,orservice;(d)thedateupon which thebenefit,item,orserdcewas
providedorsuppliedtothebeneficiary;and(e)thenameoftherefeningphysicianorotherhealth
care provider, as w ell as a tm ique identifying num ber,know n either as the U zlique Physician
IdentificationNllmber(ççIJPlN'')orNationalProviderIdentifier(GçNPI'').Theclaim form couldbe
submittedin hazd copy orelectronically.
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 3 of 20
PartB C overaze and R eaulations
6. CM S acted tllrough fiscal agents called M edicare adm inistrative conkactors
(GçM ACs''),which were statmory agentsforCM S forM edicarePM B.TheM ACSwereprivate
entities that reviewed claim s and m ade paym ents to providers for services rendered to
benetk iades.The M ACSwere responsible forprocessing M edicare claim s mising within their
assigned geographicalarea,including determining whetherthe claim w as fora covered service.
Novitas Solutions,Inc.(EW ovitas'') was the M AC for consolidated M edicare
jtlrisdictionsJH andJL,wllich includedTexas,amongotherstates.
Tozeceive M edicare reim bm sem ent,providershad to m ake appropriate application
to the M AC and execute a written provider agreem ent.The M edicare provider enrolhnent
application,CM S Form 8558,wasrequired to be signed by an authodzed representative ofthe
provider.CM S Form 8558 contained a certification thatstated:
I agree to abide by the M edieaze laws,regulations,and progrnm
instnzctions that apply to tllis provider. The M edicare law s,
regulations, and program instructions are available through the
M edicare contractor. 1 tm derstand that paym ent of a claim by
M edicare is conditioned upon the claim and the underlying
transaction complying with such laws, regulations and progrnm
instructions(including,butnotlimitedto,theFederalanti-ldckback
statuteandtheStarklaw),andonthesupplier'scompliancewitha11
applicableconditionsofparticipation in M edicare.
CM S Form 8558 contained additionalcertifications that the provider ççwillnot
knowingly presentorcause to be presented a false orfraudulentclnim forpaym entby M edicare''
and1:w111notsubm itclaim swith deliberateignoranceorrecldessdisregard ofthei.
rtruth orfalsity.''
10. M edicare PM B paid for claim s only if the item s or services were m edically
reasonable,medically necessaty forthetreatmentordiagnosisofthepatient'sillnessorinjtzry,
doclzm ented,and acm ally provided asrepresented to M edicare.M edicare w ould notpay foritem s
orservicesthatw ere proclzred through ldckbacks and bribes.
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 4 of 20
G enetic T estinz
Genetic testing refers to lqboratory tests that used DNA sequencing to detect
mutationsin genesthatcouldindicateahigherrisk ofdeveloping certainm edicalconditionsinthe
futtzre,orto assistin thetreatm entorm anagem entoftheseconditions.
12. Cancergenetictests(1GCGx tests'')were designedto detectmutationsthatcould
lead to ahigherrisk ofdeveloping catwerortoassistinthetreatm éntofanexistingcancer;cardiao
genetictests(lEcardiotests'')weredesignedtodetectmutationsthatcouldleadtoahigherl'
isk of
developingcertaincardiacconditions;atldphmnnacogenetictests(&TGxtests'')weredesignedto
assesshow genes would affecta person'sresponse to certain m edications,such asm edications
taken for depression. N one ofthese form s ofgenetic testing w as a m ethod of diagnosing,in the
firstinstance,whethermlindividualhad cmwerorheartdisease.
To conductgenetictesting,a laboratoly musthave obtained a DNA sam plefrom
the patient. Such samples were typically obtained from the patient's saliva by using a cheek
(buccal)swabtocollectsufficientcellstoprovideageneticprofile.Thegeneticsnmplewasthen
subm ittedtothelaboratory to conductagenetictest.
14. DNA sampleswere subm itted along with requisitionsthatidentified,am ong other
things,the patient,the patient's insm atwe,and the specitk test to be performed,such as a
comprehensive panelofgenesto testforrisksofmultiple cancers. Jn orderforlaboratoriesto
.
submitclaimstoM edicareforgenetictests,therequisitionshadto be approved by aphysician or
other authodzed m edical professional w ho attested to the m edicalnecessity of the test. Such
requisitionsw ere know n as<çdoctors'orders.''
4
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 5 of 20
M edicare Coveraze for G enetic Testinz
15. M edicaredid notcoverdiagnostictesting,including genetictesting,thatwasGtnot
reasonable and necessary forthe diagnosisortreatmentofillness orinjury orto improve the
ftmctioningofamalformedbodymember.''Title42,UnitedStatesCode,Section 1395y(a)(1)(A).
Except for certain statm ory exceptions,M edicare did not cover i&exnm inations perform ed for a
purposeotherthan treatmentordiagnosisofaspecificillness,symptoms,complaintorinjury.''
Title 42,Code of FederalRegulations,Section 411.15(a)(1).Among the statutory exceptions
M edicarecoveredwerecancerscreeningtestssuch asçiscreeningm nmm ography,colorectalcancer
screeningtests,screeningpelvicexnms,Eandqprostatecancerscreeningtests.''1d.
16. Ifdiagnostictestingwasnecessaty forthediagnosisortreatmentofillnessorinjury
or to improve the functioning of a m alform ed body member, M edicare imposed additional
requirementsbeforecoveringthetesting.Title42,CodeofFederalRegulations,Section410.32(a),
providedthatllgallldiagnosticx-ray tests,diagnosticlaboratorytests,and otherdiagnostictests
must be ordered by the physician who is treating the beneficiary,that is,the physician who
fllrnishesa consultation orkeatsa beneficiary fora specific m edicalproblem and who usesthe
resultsin the managem entofthebeneficiary'sspecificm edicalproblem .Testsnotordered by the
physician who istreating thebeneficiary arenotreasonable and necessary.''1d
T elem edicine
17. Telem edicine provided a m eans of connecting patients to doctors by using
telecom m unications technology,such as the internet or a telephone,to interact w ith a patient.
Telem edicine com panies provided telem edicine services,ortelehealth services,to individualsby
hiring doctors and otherhealth careproviders.
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 6 of 20
18. M edicare PM B covered expenses for specific telehealth services if certain
requirementsweremet.Theserequirementsincludedthat(a)thebeneficiarywaslocatedinarural
orhealthprofessionalshortagearea;(b)servicesweredeliveredviaaninteractiveaudioandvideo
telecommunicationssystem;and (c)thebeneficiary wasin apractitioner'soffice oraspecified
m edical facility- not at a beneficiary's hom e---during the te1ehealth service with a rem ote
practitioner.In or arotm d M arch 2020,i.
n response to the COV ID -19 pandem ic and in order to
enable access to care during the public health emergency,som e of these requirements were
nm ended temporarily to,nm ong other tllings,cover telehealth services for certain office and
hospitalvisits, even if the beneficiary w as not located in a rural area or a health professional
shortage area and even ifthe te1ehealth services w ere furnished to beneficiariesin theirhom e.
The D efendants and R elated Com panies
19. Defendant M ICHAEL STEIN ,a resident of Palm Beach County, owned and
controlled 1523HoldingsLLC and othercom panies,asfurtherdescribed herein.
20. DefendantLEONEL PAI,ATNIK ,aresidentofPalm Beach County,Florida,co-
ownedPandaConservationGroup,LLC (ûTanda'')throughaholdingentityhecontrolled,Anucan,
LLC.PA LATN IK ,along w ith the otherco-owners ofPanda,controlled and operated Panda and
its subsidiary entities.
Panda w as a com pany organized and existing tm der the law s of Texas, with a
m ailing address located at440 South FederalHighway,Suite 207,Deerfield Beach,FL 33441.
Panda ow ned m ultiple laboratories engaging in CGx and Cardio genetic testing, including
Amerihea1thLaboratory,LLC (ççAmerihealth'')andM P3Labs,Inc.(1GM P3'').
6
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 7 of 20
22. To marketitsselwices,Pandaused a callcenteroperating underthennm e<ûHea1th
Awreness Project,''or EEHAP,''located at 6451 North FederalHighway,Suite 1003,Fort
Lauderdale,FL 33308.
Am erihea1th w as a clinicallaboratory located at4225 O ffice Parltw ay,Suite 110,
D allas, TX 75204.ln or around M ay 2019, LEO N EL PA LA TM K signed and subm itted a
M edicare Emollm ent Application witich listed PALATNIK as Amerihealth's sole
director/officer, partner, authorized official, and owner. Panda and its owners acquired
Am erihea1th on or about January 1, 2020. PA LATM K and others controlled and Operated
Am erihea1th.
M.
P3 was a clinicallaboratory located at 1500 1-35 W ,Suite 120,Denton,Texas
76207.M P3 enrolled as a M edicare provider in or arotm d Septem ber2015.Panda and itsow ners
acquired M P3 on or aboutJanuary 1,2020.LEONEL PALATM K and others controlled and
operated M P3.
25. Am erihealth and M 133arecollectively referredto herein asthett aboratodes.''
26. 1523 Holdings,LLC (ç&1523''),d/b/aInwerx,wasa Floridacompany located at
2000 N .29th A ve.N o.301,H ollyw ood,FL 33020.M ICH AEL STEIN w asthe solem anager and
registered agentfor1523,and controlled and operated 1523.
27. Growthlogix,LLC (GlGrowthlogix'),d/b/a DigitalM ayo,LLC,was a Florida
company located at2000N .29th Ave.N o.301,H ollywood,FL 33020,thesnm eaddresslisted for
1523.M ICH AEL STEIN w as G'
row thlogix's registered agent.STEIN controlled and operated
Grow tlzlogix.
7
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 8 of 20
CO UNT 1
C onspiracy to D efraud the U nited States and Pay and R eceive K ickbaclks
(18U.S.C.j371)
The GeneralM legations section ofthislndictm entisre-alleged and incop orated
by reference asthough fully setforth herein.
2. From in orarotmd M arch 2019,and continuing through in oraround M arch 2021,
theexactdatesbeingunknown to theGrand Jury,in M inm i-DadeCounty,in the Southem District
ofFlorida,and elsewhere,thedefendants,
Y C H AE L ST EIN and
LEONEL PALATNHG
did knowingly and willfully,thatis,with the intentto furtherthe objectsofthe conspiracy,
com bine,conspire,corlfederate,andagreewith each other,andwith othersknown and Ilnknown
to the Grand Jury, to degaud the United States by impairing,im peding, obstructing,and
defeatingthrough deceitfuland dishonestm eans,thelawfulgovernmentfunctionsoftheUnited
Statesgovernm entand any ofitsdépartmentsoragencies,nnm ely,HHS in itsadm inistrationand
oversightofthe M edicareprogram,and to com mitcertain offensesagainstthe United States,
thatis:
toviolateTitle42,UnitedStatesCode,Sedion 1320a-7b(b)(1)(B)bysolidtingand
receiving any rem uneration,including kickbacksand bribes,directly and indirectly,overtly and
covertly,in cash and in ldnd,including by check and wire transfer,in return for ptlrchasing,
leasing,ordering,and arranging for and recom m ending the purchasing,leasing,and ordedng of
any good,facility,service,and item ,for which paym entm ay be m ade in whole and in partby a
Federalhealth careprogram ,thatis,M edicare;and
8
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 9 of 20
'
).
b. toviolateTitle42,UnitedStatesCode,Section 1320a-7b(b)(2)(B),byofferingand
paying any remtmeration,including ldckbacks and bribes,directly and indiredly,overtly and
covertly,in cash and in kind,including by oheck and wire transfer,to â person to induce such
person topm ohase,lease,order,andanangeforand recom mendpm chasing,leasing,andordering
ofany good,fadlity,service,anditem ,forwhich paymentm ay bem adein wholeandin partby a
Federalhealth cazeprogrnm ,thatis,M edicre.
Purpose ofthe Conspiracv
Itwas apurpose ofthe conspiracy forthe defendantsand theirco-conspiratorsto
unjustlyenrichthemselvesby,nmongotherthings'
.(a)offering,paying,soliciting,andreceiving
kickbacksand bribesin exchangeforreferring and arranging fortheorderingoffraudulentgenetic
testing orders to the Laboratories;(b) submitting and causing the submission of false and
fraudulentclaimsto M edicare forgenetictestingthatw asprocured through illegalldckbacksand
bribes;(c)concealingtheldckbacksandthesubmissionoffalseandfraudulentclaùnstoM edicare;
and (d)diverting ldckbacksand gaud proceedsfortheirpersonaluse and benefit,theuse and
benefitofothers,and tofurthertheconspiracy.
M anner and M eans ofthe C onspiracv
The m nnner and means by wllich the defendants and their co-conspirators sought to
accomplishtheobjectsandpup oseoftheconspiracyincluded,amongotherthings:
LE ON EL PA LA TN IK and others created and/or controlled Panda and the
Laboratories.
9
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 10 of 20
5. LEONEL PALATNIK and his co-conspiratorsfalsely certified to M edicarejhat
they andtheLaboratorieswouldcom ply with a11M edicarerulesandregulationsandfederallaws,
including the A nti-lfickback Statute,the requirem ent to not know ingly present or cause to be
presented afalse andfraudulentclaim forpaym enttoM edicare,andtherequirem enttonotsubm it
claim swith deliberateignorunce orrecldessdisregard oftheirtnlth orfalsity.
6. LEONEL PAT,
A TNIK and his co-conspirators obtained accessto thousandsof
M edicarebeneficiaries'insurance information and DNA m aterialby causing them tobetargeted
with deceptive m arketing campaigns, including online advertising and telem arketing, that
promoted genetictesting.
LEONEL PAI,ATNIK andl'
lisco-conspiratorsoffered and paid illegalkickbacks
and bribesto M ICHAEL STEIN,tlarough his entity 1523,in exchange forllis arranging for
telem edicineprovidersto ordergenetictestingforM edicarebeneficiaries.
8. M ICH AEL STEIN,through hisentities 1523,Inwem and Growtlllogix,and llis
co-conspiratorsoffered andpaid,andcaused to bepaid,illegalldckbacksand bribesto health care
providers in the form ofreferrals of Panda-recnzited patients,in exchange for the health care
providers ordering medically llnnecessary genetic testing. In so doing, STEIN, LEONEL
PAI,ATNIK,and theirco-conspiratorsexploited pandem icrelated progrnm sthatwere designed
to enable needed accessto care.
9. LEONEL PAIA TNIK ,Y CHAEL STEIN,andtheirco-conspiratorsprovided,
orcaused to be provided,confidentialM edicare beneficiary inform ation to health care providers
worldng,diredly orindirectly,for1523,Inwerx,and Growthlogix,forthepup oseofpurportedly
conducting telehealth consultations and ordering genetic testing.
âO'
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 11 of 20
10. LEONEL PAT,ATNIK ,M ICHAEL STEIN,and their co-conspirators caused
health careproviderstoordergenetictesting forM edicarebenelciariesthatwasproctlred through
the paym ent of kickbacks ahd bribes, m edically unnecessary, ineligible for M edicare
reim btlrsem ent,and notprovided asrepresented.In m any instances, thehealth careprovidershad
no pdorrelationship with the beneficiaries,were nottreating the beneficiaries forany medical
condition,didnotusethetestresultsinthetreatmentofthebeneficiades,andoften didnotconduct
atelem edicineconsultation asrepresented toM edicare.
The health care m oviders who ordered genetic testing forthe Laboratoriesw ere
requiredto sign a certitk ation on each orderthatstated &(Iam thepatient'streating physician and
thisorderisbased upon M edicare'srequirem entthatthetesting isnotordered forthepup osesof
screening but for the diagnosis and treatm ent of the patient's individual medicalcondition.''
LEOM L PR ATNIK,M ICH AEL STEIN,arld theirco-consp/atorsknew thiswasfalse.
LEONEL PALATNIK,M ICH AEL STEIN,andtheirco-conspiratorsconcealed
anddisguisedtheschemeandthepaym entandreceiptofillegalkickbacksandbribesby executing
ashnm contract,labeling paym entsaspurported çGconstlltation and IT sezvices,''and creating and
m aintaining false and fraudulentdocum ents.
LE O N EL PA LA TNIK and his co-conspirators concealed and disglzised the
schem e and the paym entand receiptofillegalkickbacks and bribes by failing to disclose the
persons with ownership and/or m anaging control of m edical providers, including M P3, to
M edicare.
11
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 12 of 20
14. Dudng the COV1D-19 public health em ergency, LEONEL PALATM K ,
M ICH AEL STEIN,and their co-conspirators caused the Laboratoriesto subm it,and cause the
subm ission of,an nm ountin excessofapproximately $73million in falseandfraudulentclaimsto
M edicare for genetic tests that were obtained through ldckbacks and bdbes, m edically
lmnecessary,ineligible forreimbm sem ent,and notprovided asrepresented.M edicm'
e paid the
Laboratoriesapproximately in excessof$51m illion forthese claims.
15. Dlzring the COV1D-19 public health em ergency, LEONEL PALATM K ,
M ICH AEL STEIN, and their co-conspirators caused providers to subm it, and cause the
subrnission ollannmotmtinexcessofapproximately$1millionirlfalseandfraudulentclaimsto
M edicare for telem edicine consultations that were obtained through ldckbacks and bribes,
m edically unnecessary,ineligible forreimbm sem ent,and notprovided asrepresented.M edicare
paidthèprovidersapproxim ately in excessof$550,000 fortheseclaim s.
16. LEONEL PAI,ATNIK ,M ICH AEL STEIN,and theirco-conspiratorsused the
fraud proceedsderived from the Laboratoriesto benefitthem selvesand others,and to furtherthe
conspiracy.
OV ER T A CT S
Infurtheranceoftheconspiracy,andtoaccomplish itsobjectsandpttpose,atleastoneof
theco-conspiratorscom m itted andcausedtobecomm itted,intheSouthem DistrictofFloridaand
elsewhere,atleastoneofthefollowing overtacts,nmong others:
O n oraboutM arch 30,2020,M ICH AE L STEIN em ailed LE O NEL PA LA TM K
a draftofa M asterServices A greem entbetween Panda and 1523,stating ççIhave ...rem oved any
referencesto telem ed/doctors.''
12
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 13 of 20
2. On oraboutM ay 27,2020,M ICHAEL STEIN emailed LEOM L PATA TNIK
and others at Panda,stating GW s per Leo's request,1 have modified the (M aster Services
Agreementjtoreflect$50,000permonth.''
On or aboutJuly 1,2020,L EO N EL PM ZA TN IX ,M IC H A EL STEIN ,and their
co-conspiratorsexecuted a M asterServicesAgreementbetween Pandaand 1523,wherein Panda
agreedto pay $50,000permonth forpurported ltconsultation and IT selwices.''
On or aboutJuly 16,2020,PALATNIK and his ço-conspirators transferred or
caused to betransfen'ed approxim ately $25,000 from an accotmtending in 0676 in thénam e of
Panda atM apleM ark Bnnk to an accountin the nam e of1523 ending in 5987 atChase Bank in
exchangeforSTEIN 'Sarranging fortelem edicineprovidersto ordergenetictesting forM edicare
beneficiaries.
On or aboutJuly 27,2020,PALATNIK and llis co-conspirators transferred or
caused to be transfen'ed approxim ately $25,000 from allaccotmtending in 0676 in thenam e of
Panda atM apleM ark Bnnk to an accotmtin the nam e of 1523 ending in 5987 atChase Bnnk in
exchangeforSTEIN 'Sarranging fortelem edicineprovidersto ordergenetictesting forM edicare
beneficiaries.
6. On oraboutSeptem ber30,2020,PAI,ATNIK and llisco-conspiratorstransfen'
ed
orcausedto betransferred approximately $35,000 from an accotmtendingin 2850 in thename of
Panda atV ista Bnnk to an accolm tin the nam e of 1523 ending in 5987 atChaseB nnk in exchange
for STEIN 'S arranging for telem edicine providers to order genetic testing for M edicare
beneficiaries.
On or aboutN ovem ber 6,2020,PAI,ATN IK and his co-conspirators transferred
orcausedto betransferred approxim ately $100,000 from an accountending in 2850 in thename
13
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 14 of 20
ofPandaatVista Bank to allyccouqtin the name of1523 ending in 5987 atChasl Bnnk in
exchangeforSTEIN'Sarranging fortelem edicineprovidersto ordergenetictesting forM edicare
beneficiaries.
Al1in violation ofTitle 18,United StatesCode,Section 371.
COUNTS 2-5
Solicitation and ReceiptqfK ickbacksin Connection with a FederalH ealth CareProgram
(42U.S.C.j1320aWb(b)(1)(B))
The GeneralAllegations section ofthisIndictm entisre-alleged and incorporated
by referenceasthough f'ully setforthherein.
2. On oraboutthe datessetforth below asto each cotmt,in Broward Cotmty,in the
,
Southem DistdctofFlorida,and elsewhere,thedefendant,
M IC H AEL STEIN ,
did knowingly and willf-
ully solicitand receive any rem uneration,thatis,lcickbacksand bribes,
directly and indirectly,overtly and covertly,in cash and in kind,inreturn forpm chasing,leasing,
ordering, and arranging for and recom m ending ptlrchasing, leasing, and ordering any good,
facility,service,anditem forwhichpaymentm ay bem adein wholeand inpaz'
tby aFederalhealth
careprogram ,thatis,M edicare,assetforth below :
A pproxim ate O riginating A pproxim ate
C ount D ate A ccount Pa ee A m ount
Panda
Conservation 1523 Holdings,
7/16/20 Group,LLC - LLC - ChaseBank $25,000
M apleM ark Bnnk N o.******5987
N o.****0676
Panda
Conservation 1523 H oldings,
7/27/20 Group,LLC - LLC - ChaseBanlc $25,000
M apleM ark Bank N o.******5987
N o.****0676
14
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 15 of 20
A pproxim ate O riginating A pproxim ate
C ount D ate A ccount Pa ee A m ount
Panda
Conservation 1523 H oldings,
4 9/30/20 Group,LLC - LLC - ChaseBank $35,000
V ista B nnk N o. N o.******5987
++***+*2850
Panda
Conservation 1523 Holdings,
11/06/20 Group,LLC - LLC - ChaseBank $100,000
V ista B nnk N o. N o.******5987
+,,++++2850
InviolationofTitle42,UnitedStatesCode,Section 1320a-7b('
b)(1)(B),andTitle18,
U nited States Code,Section 2.
C O U NT S 6-9
O ffer and Paym entofK ickbacu in C onnection w ith a FederalH eaIth C are Program
(42U.S.C.j1320a-7b(b)(2)(B))
The GeneralAllegationssection ofthislndictmentisre-alleged atld incorporated
by referenceasthough ftzlly setforth herein.
On oraboutthe datessetforth below asto each count,in Broward County,in the
Southem D istrictofFlorida,and elsewhere,the defendant,
LEO N EL PA LA TNIK ,
didknowingly andw illfully offerandpay anyremtmeration,thatis,ldckbacksandbribes,directly
and indirectly,overtly and covertly,in cash and in ldnd,assetforth below,to aperson,to induce
such person to pm chase,lease,order,and arrange for and recom mend purchasing,leasing,and
ordering any good,facility,selwice,and item forwhich paym entm ay bem adeinwholeorin pal't
by a Federalhealth care progrnm ,thatis,M edicare:
15
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 16 of 20
O riginating
Count D ate A ccount Pa ee A m ount
'
pantja
Conservation 1523 H oldings,
7/16/20 Group,LLC - LLC - Chase Bank $25,000
M apleM ark Bank No.******5987
N o.****0676
Panda
Conservation 1523 H oldings,
7 7/27/20 Group,LLC - LLC - ChaseBank $25,000
M apleM ark Bnnk No.******5987
N o.****0676
Panda
Conservation 1523 H oldings,
8 9/30/20 Group,LLC - LLC - ChaseBnnk $35,000
VistaBank No. No.******5987
+++++++p,g5()
Panda
Conservation 1523 H oldings,
9 11/06/20 Group,LLC - LLC - ChaseBank $100,000
VistaBank No. N o.******5987
+++++++a85()
In violation ofTitle 42,United StatesCode,Sedion 1320a-7b(b)(2)(B),and Title 18,
United StatesCode,Section 2.
FORFEITURE ALLEGATIONS
(18U.S.C.j982(a)(7))
The allegationscontained in thislndictmentarehereby incorporated by reference
asifsetforth fully herein foralleging crim inalforfeitureto theUnited Statesofcertain property
in which thedefendants,M ICH AEL STEIN andLEON EL PM ZATNIK ,have an interest.
Upon convidion ofaviolation ofafederalhealth careoffense,asdefined by Title
18,United States Code,Section 24 and as alleged in tllis lndictm ent,the defendant so convicted
shallforfeitto the United States of America,plzrsuantto Title 18,Ullited States Code,Section
982(a)(7),anyproperty,realorpersonal,thatconstittztesorisderived,directlyorindirectly,f'
rom
grossproceedstraceable to the com m ission ofsuch violation.
16
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 17 of 20
3. Thepropertywllichissubjecttocriminalforfeitureincludes,butisnotlimitedto,
thefollowing:A sum ofm oney equalinvaluetothepropertythatconstitutesorisderived,directly
orindirectly,from grossproceedstraceableto the comm ission ofthefederalhealth care offenses
alleged in this Indictment,for which the United States will seek entry as a forfeiture money
judgmentagainsteachdefendantuponconvictionaspartoftheirrespectivesentence.
AllplzrsuanttoTitle18,UnitedStatesCode,Section982(a)(7),andtheproceduresoutlined
atTitle21,United StatesCode,Section 853,asmadeapplicableby Title 18,United StatesCode,
Section 982(b).
x vpu s slss ,
FO REPER SON
* , ('
. .
JuM AN TON IO G ON ZM EZ
A CTING UN ITED STA TES ATTO RN EY
SOUTH ERN D ISTRICT OF FLOR IDA
D AN IEL K A HN
A CTIN G CHIEF
CRIM TN A L D IV ISION ,FM U D SECTION
ALLAN M ED IN A
DEPU TY CH IEF
CRIM INA L D IVISION ,FM UD SECTION
U .S.D EPA RTM EN T OF JUSTICE
@
*
LIGIA N
TdalA ttom ey
Crim inalD ivision,Fraud Section
U .S.D epartm entofJustice
1400 N éw Y ork A ve.,N .W .
W asllington,D .C.20005
Phone:(202)794-2219
Email:ligia.markman@ usdoj.gov
17
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 18 of 20
UM TED STATESDISTRICT Co IJRT
SOUTIV RNDISTRICT OFFLOD A
W TED STATESOFW W CA CASE NO.
CERTIFICAT E OF TR IAL ATTOR NEYY
MICHAELSTEIN,etaI., Superseding Caselnformation:
Defendants/
CourtDivision:tselectOnel Newdefendantts) I
--IYes I--INo
FZ Miami N KeyWest H FTL Numberofnew' defendants
H WPB N FTP Totalnumberofcotmts
1.1havecarefully consideredtheallegationsoftheindictm ent,thenum berofdefendants,thenumberofproG ble
witnessesandthelegalcomplexitiesoftheIndictment/lnform ation attachedhereto.
2.Inm awarethattheinform ation supplied onthisstatem entwillberelied uponbytheJudgesofthisCourtin
settingtheircalendarsand schedulingcrim inaltrialsunderthem andateoftheSpeedyTrialAct,
Title28U .S.C.Section 3161.
3.Interpreter:(YesorNo) No
Listlanguageand/ordialect
4.Thiscase willtake 15 daysforthepartiestotry.
5.Pleasecheck appropriatecategory and typeofoffenselistedbelow:
(Checkonlyone) (Checkonlyone)
1 0to5days (71 Petty (71
11 6to10days (71 Minor EEI
I11 11to20days rzrl Misdemeanor EEI
IV 21to60days E7I Felony Eq
d
V 61daysandover EEI
6.HastlliscasepreviouslybeenfiledinthisDistrictCourt? (YesorNo) No
Ifyes:Judge CaseNo.
(Attachcopyofdispositiveorder)
Hasacomplaintbeenfiledinthismatter? (YesorNo) No
Ifyes:M agistrateCase No.
Relatedm iscellaneousnum bers:
Defendantts)infederalcustodyasof
Defendantts)instatecustodyasof
Rule20 from theDistrictof
lsthisapotentialdeathpenaltycase?(YesorNo) NO
7. Doesthiscase originatefrom am atterpendingin theCentralRegionoftheU.S.Atlorney'sOffice priorto
August9,2013(Mag.JudgeAlicia0.Valle)?(YesorNo) No
8. Doesthiscase originatefrom amatterpendingin theNorthern Region oftheU.S.Attorney'sOffice priorto
August8,2014(Mag.JudgeSharliekMaynard?(YesorNo) No
9.Doesthiscaseoriginatefrom amatterpendingintùeCentralRegionoftheU.S.Atlorney'sOfficepriorto
October3,2019(Mag.JudgeJaredStrauss)?(YesorNo) No
LIG IA A AN
DOJ TrialAttorney
CourtID No. A5502656
*penaltySheetts)att
achal REV 3/19/21
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 19 of 20
U N ITED STA TES D ISTR ICT CO IJR T
SO U TH ER N D ISTR ICT OF FL OR IDA
PEN AL TY SH EET
D efendant's N am e: M IC H A EL STEIN
C aseN o:
Cotmt#:
Title 18sU nited StatesCodeeSection 371
Conspiracv to Defraud theUnited Statesandto Pay and Receive lllecalKickbacks
*M ax Penaltv: Five (5)years'imprisonm ent
Cotm ts #: 2 - 5
Title42mUnited StatesCodesSection 1320a-7b(b)(1)(B)
Solicitation and R eceiptofK ickbacks in Connection w ith a FederalH ea1th Care Procram
WM ax Penalty: Ten (10)years'im prisonmentasto each cotmt '
frR efersonly to possible term ofincarceration,does not include possible fines,restitution,
specialassessm ents,parole term s,or forfeituresthatm ay be applicable.
Case 1:21-cr-20321-CMA Document 1 Entered on FLSD Docket 05/25/2021 Page 20 of 20
' IJX ITED STATES m sTm cT cotc '
r
SO U TH ER N m sTltlc'r oF Ftzom lu
PEN AL TY SH EET
D efendant's N am e: LEO N EL PA LATN IK
C aseN o:
Count#:
Title 18sU nited StatesCode.Section 371
Conspiracy to Defraud theUnited Statesandto Pay and Receive lllezalKickbacks
*M ax Penalw : Five (5)vears'imprisonm ent
Colmts#:6 - 9
Title42sUnitedStatesCodeeSection 1320a-7b(b)(2)(B)
PavmentofKickbacksin Colm ection with a FederalHea1th Cay
reProcrnm
WM ax Penalw : Ten (10)years'im prisonmentasto each cotmt
WR efers only to possible term ofincarceration,doesnotinclude possible fines,restitution,
specialassessm ents,parole term s,or forfeituresthatm ay be applicable.
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