DENVER—Leonid and Yelena Stolyar, both age 49, and both of Denver, Colorado, were indicted by a federal grand jury in Denver late yesterday on charges of conspiracy and health care fraud, federal and state authorities announced. The defendants are expected to surrender on Thursday, January 6, 2011, based on arrest warrants issued with the indictments. The defendants are expected to then make their initial appearances in U.S. District Court in Denver, where they will be advised of the charges pending against them.According to the indictment, from August 2001 and continuing until October 2009, in the District of Colorado and elsewhere, Leonid Stolyar (aka Leon Stolyar), and Yelena Stolyar, executed a scheme to defraud health care benefit programs; namely, the Colorado Medicaid program as well as the Medicare program. The defendants owned and operated Y&L Corporation (dba Medcenter Supply). Y&L Corporation was an excluded entity, meaning they were not allowed to do business with Medicare or Medicaid. As part of the scheme, the defendants created Orthomed Supply Inc. in order to conceal their ownership status and to continue to do business as Y&L Corporation. They also failed to disclose Yelena Stolyar’s status as an excluded individual to the Colorado Medicaid program and Medicare. While excluded, Yelena Stolyar participated in the daily operations of Orthomed Supply, Inc., acted as an agent of Orthomed Supply, Inc., and maintained approximately a 50% ownership interest in Orthomed Supply, Inc.
Leonid and Yelena Stolyar, as a further part of the scheme, submitted false and fraudulent claims for durable medical equipment, items including incontinence products, ankle supports, knee supports, shoulder supports, amongst other items, with the Medicare and Colorado Medicaid Programs in order to obtain money to which they were not entitled during a period of time that Yelena was excluded from participation in the Colorado Medicaid program, the Medicare program, and all federally funded health benefit programs. Furthermore, they created and caused to be created false and fraudulent claims relating to the delivery of ankle supports, shoulder supports, and adult diapers and liners. Leonid Stolyar used bank accounts to conceal monies and transactions, and from which Yelena Stolyar was compensated for her interest in Orthomed Supply, Inc.
On or about December 20, 2001, Yelena Stolyar was excluded for a period of 10 years by the Secretary of Health and Human Services from participating in the Medicare program, the Medicaid program, and all federal health care programs as a result of a felony conviction associated with the delivery of a health care item or service under the Medicare program. She later received a lifetime exclusion in December 2005.
Medicare is a federal insurance program that provides health insurance coverage for people age 65 and older, and for certain disabled people as well. The Medicare program is divided into several different parts: "Part A" of the Medicare program covers health services provided by hospitals, skilled nursing facilities, hospices, and home health agencies; "Part B" of the Medicare program covers most outpatient services, including durable medical equipment (DME), that is, equipment which may be used in the home or on a repeated basis for a medical purpose. DME include, among other things, wound care supplies, diabetic supplies, and wheelchairs. The Medicaid Program is a jointly funded between the Federal and State governments to assist States in the provision of adequate medical care to eligible needy persons. In Colorado, Medicaid is funded with approximately 50% federal monies, and the remaining 50% is paid by the state.
Additionally, the defendants were charged with 49 counts of money laundering associated with financial transactions derived from their fraudulent activities.
“Healthcare fraud results in higher costs for everyone,” said U.S. Attorney John Walsh. “Prosecutions such as this are vitally important to protect those who need Medicare and Medicaid from these unnecessary cost increases.”
“Colorado’s Medicaid program and the federal Medicare program provide essential health services to the neediest among us,” Colorado Attorney General John Suthers said. “Individuals and companies that defraud these programs not only steal from the state and federal government, but also detract from the resources available to the poor and elderly. This case underlines the partnership we have with federal law enforcement to investigate and prosecute Medicaid and Medicare fraud.”
“Combating Health Care Fraud is a top criminal priority for the FBI,” said FBI Special Agent in Charge James Davis. “The FBI will continue our unwavering support to our state and federal partners in disrupting and dismantling criminal enterprises that defraud all federally funded healthcare benefit programs.”
“The Office of the Inspector General of Health and Human Services is appreciative of the collaborative efforts of our law enforcement partners and the United States Attorney’s Office in this investigation. The OIG will continue to devote maximum investigative resources to protect the Medicare Trust Fund, beneficiaries and taxpayers against fraud, waste and abuse,” said Les Hollie, Special Agent in Charge of the Kansas City Regional Office of HHS-OIG.
“Health care fraud harms everyone and increases the costs of legitimate health care; to combat healthcare fraud, IRS CI provides financial investigative expertise to multi-agency task forces where we follow the money trail from the crime to the culprit,” said Lilia Ruiz, Acting Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Leonid and Yelena Stolyar were each charged with 1 count of conspiracy to commit health care fraud, 2 counts of health care fraud, 10 counts of making false statements relating to health care matters, 1 count of causing false representations in relation to health care programs, 26 counts of money laundering, and 1 count of conspiracy to commit money laundering. Leonid was charged with an additional 22 counts of money laundering for a total of 48 counts of money laundering.
Conspiracy to commit health care fraud, making false statements relating to health care matters, and causing false representations in relation to health care programs carry a penalty of not more than 5 years’ incarceration and a fine of up to $250,000 per count. Health care fraud, money laundering, and conspiracy to commit money laundering carry a penalty of 10 years’ incarceration and a fine of up to $250,000 per count.
If convicted, the defendants shall forfeit to the United States of America, all of their interest in any property, real or personal, that constitutes or is derived, directly or indirectly, from gross proceeds traceable to the commission of the scheme. In this case, the Stolyars face asset forfeiture of $3.8 million to compensate Medicaid and over $500,000 to compensate Medicare for their fraudulent criminal conduct.
This case was investigated by the Federal Bureau of Investigation (FBI), IRS – Criminal Investigation, Health and Human Services Office of the Inspector General, and the Medicaid Fraud Control Unit.
The case is being prosecuted by Assistant U.S. Attorney’s Jaime Pena and Tonya Andrews.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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