By Tiffany Williams –
A $42 million health care fraud scheme, an armed bank robbery and two separate financial fraud cases have produced a guilty plea and prison sentences in federal court.
In Florida, Chad Monroe admitted participating in a scheme involving unnecessary medical equipment, cancer genetic testing and illegal kickbacks. In Arkansas, Aljon Smith received a 17½-year sentence after forcing bank employees into a vault at gunpoint.
Two other defendants received prison terms for their roles in diverting legitimate wire payments and stealing Social Security benefits deposited after a relative’s death.
Florida Man Pleads Guilty in $42 Million Fraud
Chad Monroe, 48, of Tarpon Springs, Florida, pleaded guilty to conspiracy to commit health care fraud and wire fraud in a case involving false medical claims and a fraudulently obtained Paycheck Protection Program loan.
According to court documents and statements made in court, Monroe and his co-conspirators submitted claims for durable medical equipment and cancer genetic testing that Medicare beneficiaries did not want or need.
The equipment included knee, wrist, ankle and back braces.
Monroe and others opened three companies — Maksix Medical Products Inc., Orthotech Atlanta, LLC, and 1st Choice Medical Supply LLC — that submitted more than $26 million in false claims to Medicare, Medicare Advantage plans and TRICARE.
Monroe directed co-conspirators to lie on Medicare enrollment documents to conceal his ownership of and involvement in the businesses.
The scheme also relied on payments for medical orders. Monroe paid illegal kickbacks to purported telemedicine companies to generate doctors’ orders for equipment and genetic testing.
Through another company, Health and Life Networking LLC, Monroe sold genetic testing orders to laboratories involved in the conspiracy. Those laboratories paid him more than $15 million in illegal kickbacks.
The fraud extended to pandemic assistance. Monroe directed a co-conspirator to submit a fraudulent PPP loan application for more than $30,000. The application contained false information, including misrepresentations about the ownership of 1st Choice Medical Supply LLC, to qualify for the loan.
Monroe used proceeds from the scheme to purchase luxury vehicles and a 47-foot yacht valued at more than $600,000, named “The Rogue Shark.” His purchases also included a Cadillac Escalade.
The government seized the yacht and more than $1 million in connection with the charges.
A sentencing date has not been set. Monroe faces maximum penalties of 10 years in prison for the health care fraud conspiracy and 30 years for wire fraud. A federal judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Armed Bank Robbery Brings 17½-Year Sentence
Aljon Smith, 32, of Oklahoma City, was sentenced Nov. 12 to 210 months in federal prison for bank robbery and using a firearm during and in relation to a federal crime of violence.
The sentence, equivalent to 17½ years, will be followed by three years of supervised release. Chief U.S. District Judge Timothy L. Brooks presided over the hearing in Fayetteville, Arkansas.
According to court documents, Smith entered First National Bank in Fort Smith on Jan. 20, displayed a firearm and ordered one teller to the ground. He directed another teller to lock the door.
Smith then forced the employees into the bank vault and ordered them to fill a trash bag with cash. He fled with the stolen money.
Investigators located Smith in Oklahoma City two days later. U.S. Marshals Service deputies, working with Fort Smith and Oklahoma City police detectives, arrested him Jan. 22.
The firearm used in the robbery and some of the stolen money were recovered.
Email Fraud Redirected Payments Into Conspirators’ Accounts
Zamar McPherson, 50, of Boynton Beach, Florida, received a three-year federal prison sentence for her role in a business email compromise scheme that stole millions of dollars from victims across the United States.
McPherson pleaded guilty to one count of conspiracy to commit bank and wire fraud and two counts of wire fraud. Her prison term will be followed by three years of supervised release.
The court ordered her to forfeit $154,474.85 and to pay more than $1.5 million in restitution to four victims, jointly and severally with her co-conspirators.
The scheme targeted payments the victims already intended to make.
A member of the conspiracy created fictitious email accounts and used them to send victims new banking instructions. Believing they were making legitimate payments, the victims instead transferred money into accounts belonging to McPherson and her co-conspirators.
McPherson, Garland Shelton, 57, of Wytheville, Virginia, and Olivia Oxley, 35, of Brooklyn, New York, used personal accounts and accounts for illegitimate businesses at multiple financial institutions to receive the fraudulent transfers.
Shelton and Oxley were sentenced earlier this year for their roles.
The deception centered on substituting the destination of a payment. The victims had legitimate obligations to pay, but the false emails directed their money to the conspiracy’s accounts.
Grandmother’s Social Security Benefits Stolen for Nearly a Decade
Jonathan Frank Barner, 55, of Illinois, was sentenced to 15 months in federal prison for stealing government money deposited into his deceased grandmother’s bank account.
U.S. District Judge John Baldalamenti also entered a forfeiture order for $107,175, representing proceeds of the offense. Barner pleaded guilty May 18.
According to court documents, the theft continued from approximately May 2013 through April 2023.
The Social Security Administration, incorrectly believing Barner’s grandmother was still alive, continued depositing her monthly retirement benefits.
Barner did not report her death to the agency. Instead, he repeatedly accessed her account, withdrew the money and used it for his own expenses.
The withdrawals continued until the Social Security Administration stopped making payments and the account was exhausted in April 2023.
Over that period, Barner stole more than $107,000 belonging to the United States.