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U.S. Department of Homeland Security Weekly Digest Bulletin

U.S. Department of Homeland Security
*DHS Adds PRC-Based Seafood, Aluminum, and Footwear Entities to Uyghur Forced Labor Prevention Act Enforcement List* "06/11/2024" 

U.S. DEPARTMENT OF HOMELAND SECURITY

Office of Public Affairs

________________________________________________________________________

*DHS Adds PRC-Based Seafood, Aluminum, and Footwear Entities to Uyghur Forced Labor Prevention Act Enforcement List

*"UFLPA Entity List Currently Restricts Goods from 68 PRC-Based Companies From Entering the United States"

WASHINGTON – Today, the U.S. Department of Homeland Security (DHS) announced the addition of three People’s Republic of China (PRC)-based seafood, aluminum, and footwear companies to the Uygur Forced Labor Prevention Act (UFLPA) Entity List. Through these actions, DHS is increasing its focus on seafood, aluminum, and shoes—sectors that play an important role in Xinjiang’s economy – and ensuring goods made with forced labor are kept out of the U.S. market.

Effective June 12, 2024, U.S. Customs and Border Protection (CBP) will apply a rebuttable presumption that goods produced by these entities will be prohibited from entering the United States. By identifying entities found to utilize and/or facilitate the forced labor of Uyghurs and other persecuted groups from the Xinjiang Uyghur Autonomous Region (XUAR), the UFLPA Entity List provides companies with more information about the potential involvement of forced labor in their supply chains.

The entities being added to the UFLPA Entity List today include Dongguan Oasis Shoes Co., Ltd. (also known as Dongguan Oasis Shoe Industry Co., Ltd.; Dongguan Luzhou Shoes Co., Ltd.; and Dongguan Lvzhou Shoes Co., Ltd.), Shandong Meijia Group Co., Ltd. (also known as Rizhao Meijia Group), and Xinjiang Shenhuo Coal and Electricity Co., Ltd.

“The Department of Homeland Security will not tolerate forced labor in U.S. supply chains and will enforce our laws across all industries and sectors,” *said Secretary of Homeland Security Alejandro N. Mayorkas.* “We will continue to investigate companies that use or facilitate forced labor and will hold those entities responsible. We urge stakeholders across industry, civil society and our international partners to work with us to eliminate the scourge of forced labor.”

The Forced Labor Enforcement Task Force (FLETF), chaired by DHS, is taking these steps as part of the United States’ commitment to eradicating forced labor, and promoting accountability for the ongoing genocide and crimes against humanity against Uyghurs and other religious and ethnic minority groups in the Xinjiang Uyghur Autonomous Region.

Including the three entities identified today, the FLETF—whose member agencies include the Office of the U.S. Trade Representative and the U.S. Departments of Commerce, Justice, Labor, State, and the Treasury—has added 68 entities to the UFLPA Entity List since the UFLPA was signed into law in December 2021. In the last 12 months alone, the Entities List has grown by 240 percent, reflecting our strong commitment to increase enforcement. These entities are active in a wide range of sectors, including agriculture, apparel, batteries, chemicals, electronics, food additives, household appliances, nonferrous metals, polysilicon, and plastics. Identifying these entities also increases transparency on the presence of forced labor in supply chains.

“Today’s action, which includes entities from within and outside Xinjiang, and from three different industry sectors—footwear, seafood, and aluminum—reaffirms our commitment to robust enforcement of the UFLPA,”* said DHS Under Secretary for Policy Robert Silvers, who serves as Chair of the FLETF.* “We have shown again through today’s enforcement actions that the United States is taking concrete steps to keep goods made with forced labor out of U.S. supply chains. It is imperative for companies to conduct due diligence and know where their products are coming from. The Forced Labor Enforcement Task Force will continue to designate entities that meet the UFLPA’s criteria for inclusion on the Entity List, and U.S. Customs and Border Protection will continue its vigilant enforcement at our ports.”

The FLETF has reasonable cause to believe, based on specific and articulable information, that each of the three entities works with the government of the XUAR to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted group out of the XUAR. The FLETF therefore determined that the three entities satisfy the criteria for addition to the UFLPA Entity List described in Section 2(d)(2)(B)(ii).

*Shandong Meijia Group Co., Ltd*. (also known as Rizhao Meijia Group), is a company based in Shandong Province, China, that processes, sells, and exports frozen seafood products, vegetables, quick-frozen convenience food, and other aquatic foods. Information reviewed by the FLETF, including publicly available information, indicates that Shandong Meijia Group Co., Ltd. participated in XUAR government-sponsored labor transfer programs to transfer and receive individuals from persecuted groups, including Uyghurs, out of the XUAR for labor at its factory in Shandong.

“Shrimp supply chains have a disturbing pattern of profiting off of the globe’s most vulnerable populations. Argentinian red shrimp packed by Uyghurs in Chinese seafood processing plants should not be competing with wholesome products in American grocery stores,” *said John Williams, executive director of the Southern Shrimp Alliance.* “The Forced Labor Enforcement Task Force’s initiative to counter forced labor in seafood supply chains sends a strong message to U.S. seafood importers that chasing lower costs and higher margins cannot replace ethical and legal obligations.”

*Dongguan Oasis Shoes Co., Ltd. *(also known as Dongguan Oasis Shoe Industry Co., Ltd.; Dongguan Luzhou Shoes Co., Ltd.; and Dongguan Lvzhou Shoes Co., Ltd.) is an entity headquartered in Guangdong Province, China, that produces and manufactures shoes and shoe material products. Information reviewed by the FLETF, including publicly available information, indicates that Dongguan Oasis Shoes Co., Ltd. cooperated with the Xinjiang Production and Construction Corps (XPCC) to recruit, transfer, and receive individuals from persecuted groups, including Uyghurs, out of the XUAR for labor at its factory in Guangdong.

*Xinjiang Shenhuo Coal and Electricity Co., Ltd. *is a company located in the XUAR that produces electrolytic aluminum, graphite carbon, and prebaked anodes. Information reviewed by the FLETF, including publicly available information, indicates that Xinjiang Shenhuo Coal and Electricity Co., Ltd. participated in a XUAR government-sponsored labor transfer program and worked with XUAR government entities to cooperate with the XUAR government to recruit, transfer, and receive individuals from persecuted groups, including Uyghurs, out of the XUAR.

The bipartisan Uyghur Forced Labor Prevention Act, signed into law by President Biden in December 2021, mandates that CBP apply a rebuttable presumption that goods that are mined, produced, or manufactured in the XUAR or produced by entities identified on the UFLPA Entity List are prohibited from importation into the United States unless the Commissioner of CBP determines, by clear and convincing evidence, that the goods were not produced with forced labor. CBP began enforcing the UFLPA in June 2022. Since then, CBP has reviewed almost 8,500 shipments valued at more than $3.3 billion under the UFLPA Additionally, Homeland Security Investigations, through the DHS Center for Countering Human Trafficking, supports investigations and outreach to secure international cooperation in investigating human rights abuses and forced labor.

Today’s announcement supports the memorandum [ https://www.whitehouse.gov/briefing-room/presidential-actions/2023/11/16/memorandum-on-advancing-worker-empowerment-rights-and-high-labor-standards-globally/ ] President Biden signed in November 2023 on advancing worker empowerment, rights, and high labor standards globally. The memorandum represents the first whole-of-government approach to advance workers’ rights by directing federal agencies engaged abroad to advance international recognized labor rights, which includes DHS’ work implementing the UFLPA.

This expansion of the UFLPA Entity List reflects DHS’ prioritization of efforts to combat the introduction of forced labor into U.S. supply chains. This commitment is outlined in the Department’s Quadrennial Homeland Security Review [ http://www.dhs.gov/qhsr ], which added combating crimes of exploitation, including labor exploitation, as the newest and sixth DHS mission.

You can read more about the FLETF by visiting: www.dhs.gov/uflpa [ http://www.dhs.gov/uflpa ].

# # #

*Save the Date: 2024 National Summit on K-12 School Safety and Security* "06/11/2024"

2024 National Summit on K-12 School Safety and Security

*Save the Date: 2024 National Summit on K-12 School Safety and Security
*Wednesday, September 25 – Thursday, September 26

For the third year in a row, the Cybersecurity and Infrastructure Security Agency will host the National Summit on K-12 School Safety and Security [ https://www.cisa.gov/news-events/events/2024-national-summit-k-12-school-safety-and-security ]. This virtual event brings together K-12 school leaders and practitioners to discuss and share actionable recommendations that enhance safe and supportive learning environments.

The 2024 Summit will feature panel discussions, sessions and keynote speakers covering topics such as understanding and preventing youth violence, protecting K-12 networks, youth online safety, supporting student mental health, emergency planning and physical security, and restorative and intervention practices. These sessions are designed to foster a nationwide dialogue on some of the most critical school safety issues, as well as equip school stakeholders and personnel with resources, training and best practices to apply in their local school settings and communities.

This free event is open to anyone with a passion for improving school safety but will be of particular interest to K-12 school and district administrators; principals and superintendents; school-based law enforcement; teachers and school staff; mental health practitioners; first responders; federal, state, local, tribal and territorial government partners; and other school safety and security professionals.

*The 2024 Summit will be held on September 25 and 26. *Registration will open in late July. For more information, please visit cisa.gov/news-events/events/2024-national-summit-k-12-school-safety-and-security [ https://www.cisa.gov/news-events/events/2024-national-summit-k-12-school-safety-and-security ].

CISA Footer

*Register for the Invent2Prevent Final Presentation and Competition Event* "06/11/2024"

I2P Logo Header [ https://event.edventurepartners.com/registration ]

Register: Spring 2024 Invent2Prevent (I2P) Final Presentation and Competition Event

*"Sponsored by the U.S. Department of Homeland Security
Center for Prevention Programs and Partnerships"*

Watch I2P student finalists as they present their innovative solutions to address hate crimes, targeted violence, and terrorism. They’ll be competing for $27,000 in program awards to create safer and more resilient communities.

*Featured Finalists: *

High School

* Englewood S.T.E.M. High School (Chicago, IL): *Mind Over Mad-Her** *
* Penn Manor High School (Millersville, PA):* Friday Fun* [ https://www.instagram.com/fridayfun24/ ]* *
* Urban Assembly (Brooklyn, NY):* Bridging the Gap* [ https://www.instagram.com/adamsstreetylc ]* *

College

* Missouri State University (Springfield, MO): *The C.R.A.N.E. Project* [ https://classroomcranes.com/ ]
* Ohio Dominican University (Columbus, OH):* Shelve the Hate* [ https://www.shelvethehate.org/ ]* *
* University Of Maryland (College Park, MD):* infOasis* [ https://www.inf0asis.com/ ]

*Guest Speakers:*

* *Kristie Canegallo*, Senior Official Performing the Duties of the Deputy Secretary, U.S. Department of Homeland Security
* *Dr. David Mussington*, Executive Assistant Director for Infrastructure Security, Cybersecurity and Infrastructure Security Agency
* *Fayrouz Saad*, Assistant Secretary, Office of Partnership and Engagement, U.S. Department of Homeland Security

*Join us on Wednesday, June 26, from 10 a.m. to 3 p.m. EST!   *

Register here [ https://event.edventurepartners.com/registration ] by June 24 [ https://event.edventurepartners.com/registration ] to attend in person in downtown, Washington, D.C. or watch the livestream.

"Some systems may cause issues with registration. Registering via phone or mobile device may help. If you have difficulties, please contact karin@edventurepartners.com."

Invent2Prevent Final [ https://event.edventurepartners.com/registration ]

"CP3 prioritizes privacy, civil rights, and civil liberties within DHS legal authorities and policy. CP3 works to ensure that its programs include fundamental constitutional and legal protections. CP3 does not engage in widespread data collection or activities like law enforcement investigations or intelligence gathering. CP3 does not engage in censorship or encourage or facilitate any censorship. Government censorship of viewpoints not only infringes on individuals’ constitutional rights, but it is also an ineffective tactic to prevent targeted violence and terrorism."

*Anti-Human Trafficking Resources for the LGBTQIA+ Community and Summer Travelers* "06/11/2024"

View as a webpage

CCHT Chronicle

*The monthly Newsletter of the Center for Countering Human Trafficking*

June 2024

At the Center

The Center for Countering Human Trafficking Logo

Last month, the US Department of Homeland Security’s (DHS) Center for Countering Human Trafficking (CCHT) hosted a quarterly roundtable with human trafficking lived experience experts to discuss ways to build trust with survivors of trafficking through trauma-informed care.

The panel, hosted by Homeland Security Investigations (HSI) Dallas in Irving, Texas, was moderated by CCHT Unit Chief for Sex Trafficking Investigations Owen Tims. It included four lived experience experts in human trafficking who spoke about their experiences with law enforcement officers and how those experiences shaped their perceptions of law enforcement as victims of human trafficking. Each lived experience expert made recommendations on changes that would improve interactions with law enforcement.

The CCHT hosts quarterly discussions with lived experience experts as part of an ongoing effort to ensure victim-centered practices in human trafficking investigations.

Blue Campaign Corner

Stand United with Blue Campaign to Protect Pride This June

According to the Polaris Project [ https://bit.ly/3QsXRh4 ], people who identify as LGBTQIA+ can be especially vulnerable to human trafficking partially due to lack of resources and discrimination. This June, stand with Blue Campaign by celebrating #PrideMonth and protecting the LGBTQIA+ community from the scourge of human trafficking in all forms. The following resources aim to educate LGBTQIA+ communities and their allies about the heinous crime and empower individuals and advocates to report suspected cases:

* Resources Available for Victims webpage [ https://go.dhs.gov/oRv ]
* DHS Gender-Based Violence pamphlet [ https://go.dhs.gov/3Gr ]
* Understanding Youth Exploitation webpage [ https://go.dhs.gov/Zgs ]
* Polaris Project’s materials for LGBTQIA+ communities [ https://bit.ly/3Vwkgw3 ]

When we work together to combat human trafficking, we make our world a safer place for all. Follow Blue Campaign (@DHSBlueCampaign on X [ http://bit.ly/2t5wUHa ], Facebook [ http://bit.ly/2PfCRYK ], and Instagram [ http://bit.ly/2CYl9pg ]) for more information.

Human Trafficking Awareness Resources for Summer Travelers

Human Trafficking Can Happen Here cruise ship postage stamp graphic

Though human trafficking does not require movement of a person, traffickers often exploit America’s transportation infrastructure to perpetrate their crimes. That means human trafficking is often facilitated through airports, bus stations, and travel centers. It also happens at other places travelers may encounter during their summer road trips, like truck stops, RV or camping parks, and rest areas. Before you hit the road, check out Blue Campaign’s human trafficking awareness resources for summer travelers. Being informed could make all the difference.

* Indicators of human trafficking [ https://go.dhs.gov/ZJN ]
* How to report human trafficking [ https://go.dhs.gov/JVE ]
* Human trafficking truck stop awareness video [ https://go.dhs.gov/4by ]
* Human trafficking awareness for large events [ https://go.dhs.gov/JpH ]

Component Spotlight: USCIS

As the DHS agency that oversees lawful immigration to the United States, U.S. Citizenship and Immigration Services (USCIS) is responsible for upholding a fair and respectful immigration system. One of the many ways USCIS accomplishes its mission is by protecting those victimized by crimes like human trafficking. Traffickers often take advantage of a lack of immigration status to exploit and control victims who may be fearful of working with law enforcement. USCIS offers immigration relief to eligible survivors in two forms: T and U visas. T visas, which were recently strengthened [ https://go.dhs.gov/3GV ], are designed for victims of a severe form of trafficking in persons. U visas are for victims of certain qualifying criminal activities, including human trafficking and involuntary servitude.

*Learn More* [ https://go.dhs.gov/ouU ]

From the Field

HSI Detroit-led Operation Results in Arrests of Three Child Predators, Identification of at Least 15 Victims of Human Trafficking

In late April, HSI Detroit along with the Taylor, Michigan Police Department and other state, local, and federal partners conducted an operation aimed at catching child predators and identifying possible victims of trafficking.

The four-day operation led to the arrest of three men who were charged with crimes involving the sexual abuse of children. At least 15 adult victims of human trafficking were also identified.

“I’m incredibly proud of the team effort for this operation,” said HSI Acting Special Agent in Charge Shawn Gibson. “Not only were these teams able to identify and provide victims with services, but they were also able to take some dangerous alleged predators off the streets of Southeastern Michigan. These partnerships should serve as an example to the communities we serve of the impactful work we can accomplish when law enforcement works together on every level.”

*Read More* [ https://go.dhs.gov/3GC ]

To report suspected human trafficking to federal law enforcement, call *1-866-347-2423*.

To get help from the National Human Trafficking Hotline, call *1-888-373-7888* or text *HELP *or *INFO *to *BeFree (233733)*.

Follow us! @DHSBlueCampaign

facebook [ http://bit.ly/2PfCRYK ]

instagram [ http://bit.ly/2CYl9pg ]

X [ http://bit.ly/2t5wUHa ]

*Readout of Joint Task Force Alpha’s Third Anniversary Meeting* "06/11/2024" 

U.S. DEPARTMENT OF HOMELAND SECURITY

Office of Public Affairs

________________________________________________________________________

*Readout of Joint Task Force Alpha’s Third Anniversary Meeting

*"Departments of Homeland Security and Justice Expand Joint Task Force Alpha to Colombia and Panama to Combat Human Smuggling in the Darién; Justice Department Transmits New Legislative Proposal; and State Department Announces $8M Rewards Offer"**

WASHINGTON – Today, Senior Official Performing the Duties of Deputy Secretary of Homeland Security Kristie Canegallo and Attorney General Merrick B. , the highly successful national effort to investigate and prosecute human smuggling at the southern border, by convening senior leaders of the Departments of Justice, Homeland Security, and State to discuss their shared, ongoing work. Over the past three years, the work of JTFA has led to over 300 domestic and international arrests and over 240 convictions in the United States. Among other things, the meeting covered several new initiatives, including JTFA’s expansion to combat human smuggling in Colombia and Panama, which lie on either side of a region known as the Darién; a legislative proposal to increase penalties for the most prolific and dangerous human smugglers; and $8 million in rewards offers issued as part of the new Anti-Smuggling Rewards Initiative announced two weeks ago.

“Countering human smuggling, and the ruthless criminal organizations that perpetrate it, is a law enforcement priority and critical to our homeland security,” *said Senior Official Performing the Duties of the Deputy Secretary of Homeland Security Kristie Canegallo. *“The Department of Homeland Security and our partners across the Biden-Harris Administration are prioritizing combatting human smuggling with the coordinated efforts and innovation that this crime demands. The steps taken today to expand the scope of Joint Task Force Alpha will lead to more arrests, indictments, and convictions of traffickers; support our efforts to dismantle transnational criminal organizations; and help protect migrants from those looking to exploit them for financial gain.”

“Today, we are doubling down on our efforts to strike at the heart of where human smuggling networks operate,” *said Attorney General Garland.* “In the next phase of Joint Task Force Alpha’s work, we are expanding its regional focus, offering new financial rewards for information about key leaders of smuggling criminal organizations, and asking Congress to enact longer sentences for human smugglers. We will continue to work across the federal government to disrupt and dismantle the human smuggling networks that prey on vulnerable migrants and endanger our national security.”

“We are using every tool at our disposal to disrupt and dismantle the human smuggling networks that have spread misery throughout the Western Hemisphere,” *said Deputy Attorney General Lisa Monaco. *“With today’s announcement, we are expanding our enforcement efforts to the Darién—among the most dangerous migrant crossings on Earth—and deploying rewards programs like the ones that have brought down drug kingpins to pursue human smugglers. To those who traffic human beings through the Darién, know this: the full force of the U.S. government is coming for you.”

The Darién is a roadless stretch of mountainous jungle terrain connecting southern Panama with northern Colombia that forms the sole land bridge between Central America and South America. Its treacherous landscape has witnessed a surge in human smuggling as migrants cross it on foot, often exposing themselves to mortal danger at the hands of criminal smuggling organizations to do so. Organized criminals who control the route routinely target migrants—adults and children—for violent crimes, including murder, rape, and robbery, as well as extortion. Many migrants try to circumvent the land route by taking a sea voyage, which is just as dangerous. They risk death on this path, too, facing rough seas, overcrowding, rickety boats, and insufficient life vests.

Senior Official Performing the Duties of Deputy Secretary of Homeland Security Kristie Canegallo and the Attorney General was joined at today’s event by key partners in JTFA’s ongoing work, including Deputy Attorney General Lisa Monaco; Assistant Secretary of State for the Bureau of International Narcotics and Law Enforcement Affairs Todd D. Robinson; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Deputy Executive Associate Director Patrick McElwain of Homeland Security Investigations (HSI); Deputy Chief David S. BeMiller of U.S. Border Patrol; U.S. Attorney Alamdar Hamdani for the Southern District of Texas; U.S. Attorney Jaime Esparza for the Western District of Texas; U.S. Attorney Alexander M.M. Uballez for the District of New Mexico; U.S. Attorney Gary Restaino for the District of Arizona; and U.S. Attorney Tara K. McGrath for the Southern District of California.

When the Attorney General created JTFA in 2021, it focused on human smuggling organizations operating in Mexico, El Salvador, Guatemala, and Honduras. Since then, JTFA—led by the Criminal Division’s Human Rights and Special Prosecution Section, in close partnership with all five southwest border U.S. Attorneys’ Offices—has brought many major human smugglers to justice in the United States, including by obtaining years- or decades-long prison sentences. Expanding JTFA to Colombia and Panama recognizes those achievements and seeks to apply that same approach—using expert investigative, prosecutorial, and intelligence resources to target and aggressively pursue, disrupt, and dismantle human smuggling and trafficking networks—to achieve accountability and deterrence, with an unwavering focus on human safety, in Colombia and Panama.

JTFA’s expansion is another example of DHS and the Justice Department’s sustained focus on prosecuting human smuggling, following last week’s joint announcement with DOJ and State regarding a new Anti-Smuggling Rewards Initiative [ https://www.justice.gov/opa/pr/justice-department-expands-efforts-dismantle-human-smuggling-operations-and-support ], support for enhancements to the penalties for smuggling, and other efforts.

In addition, earlier today, the Department of Justice formally transmitted to Congress a new legislative proposal to increase penalties for the most prolific and dangerous human smugglers. The proposal, titled the “Deterring Human Smuggling and Harm to Victims Act of 2024,” would amend U.S. Sentencing Guideline 2L1.1, which governs human smuggling offenses, by creating steeper penalty tiers based on the number of people smuggled by the defendant; increasing penalties when the defendant’s conduct results in injury or death to more than one person; and ensuring defendants are subject to sentencing enhancements for sexual assault and other types of prohibited sexual conduct committed during the smuggling offense, even if that conduct occurred outside U.S. jurisdiction.

The State Department also announced today the first three awards under the Anti-Smuggling Rewards Initiative. These awards, which total up to $8 million, were discussed at today’s meeting by Assistant Secretary of State for the Bureau of International Narcotics and Law Enforcement Affairs Robinson. These awards focus on human smuggling operations by the Clan del Golfo in the Darién, and offer: (1) Up to $2 million for information leading to the arrest and/or conviction of any key leader of Clan del Golfo involved in human smuggling in the Darién; (2) Up to $1 million for information leading to the disruption of financial mechanisms of the Clan del Golfo to finance, sustain, or support human smuggling operations in the Darién; and (3) Up to $5 million for information leading to the arrest and/or conviction of any key leader of Clan del Golfo involved in human smuggling in the Darién by encouraging and inducing aliens to enter the United States resulting in death, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iv) and 1324(a)(1)(B)(iv). Information in response to the reward offer can be shared with HSI and CBP by telephone at (866) 347-2423 (toll free) or online at www.ice.gov/tips. Individuals located outside of the United States, can contact the nearest U.S. Embassy/Consulate and all identities are kept strictly confidential.

Fact Sheet [ https://www.justice.gov/opa/pr/fact-sheet-initiative-combat-transnational-human-smuggling-and-trafficking-networks-marks ]

# # #

*Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme* "06/13/2024" 

U.S. DEPARTMENT OF HOMELAND SECURITY

Office of Public Affairs

________________________________________________________________________

*Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme*

WASHINGTON - The U.S. Department of Justice (DOJ) announced today that the founder and CEO of a California-based digital health company and its clinical president were arrested today in connection with their alleged participation in a scheme to distribute Adderall over the internet, conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and obstruct justice.

Ruthia He, the founder and CEO of Done Global Inc., was arrested in Los Angeles and will make her initial appearance at 1:30 p.m. PDT/4:30 p.m. EDT in Los Angeles. David Brody, the clinical president of Done Health P.C. (collectively, Done), was arrested in San Rafael, California, and will make his initial appearance at 10:30 a.m. PDT/1:30 p.m. EDT in San Francisco, California.

Homeland Security Investigations (HSI) is among the federal entities investigating the case.

“The individuals charged today allegedly disregarded the first rule of medical care—do no harm—in order to maximize profits, and there is no place for such fraud in our healthcare system,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The indictment levied against these individuals sends a clear message: the Department of Homeland Security, our Homeland Security Investigations personnel, and our partners across the federal government will hold accountable those providers and prescribers who prey on their patients.”

“As alleged, these defendants exploited the COVID-19 pandemic to develop and carry out a $100 million scheme to defraud taxpayers and provide easy access to Adderall and other stimulants for no legitimate medical purpose,” said Attorney General Merrick B. Garland. “Those seeking to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Justice Department will hold them accountable.”

“As alleged in the indictment, the defendants provided easy access to Adderall and other stimulants by exploiting telemedicine and spending millions on deceptive advertisements on social media. They generated over $100 million in revenue by arranging for the prescription of over 40 million pills,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These charges are the Justice Department’s first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company. As these charges make clear, corporate executives who put profit over the health and safety of patients—including by using technological innovation—will be held to account.”

According to court documents, He and Brody allegedly conspired with others to provide easy access to Adderall and other stimulants in exchange for payment of a monthly subscription fee. The indictment alleges that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, by increasing monthly subscription revenue and thus increasing the value of the company. Done allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants, and obtained over $100 million in revenue.

“The internet is a place of remarkable innovation, allowing its users to make innumerable types of transactions with greater ease. Such transactions, however, must always be legal,” said Deputy Chief of the Criminal Division Matthew Yelovich for the Northern District of California. “The indictment alleges that He and Brody used an internet-based infrastructure to illegally distribute drug sales and to conspire to commit health care fraud. This office will always prosecute health care fraud and illegal drug distribution on the internet as vigorously as we do traditional frauds and illegal drug distribution.”

He and Brody allegedly obtained subscribers by targeting drug seekers and spending tens of millions of dollars on deceptive advertisements on social media networks. They also allegedly intentionally structured the Done platform to facilitate access to Adderall and other stimulants, including by limiting the information available to Done prescribers, instructing Done prescribers to prescribe Adderall and other stimulants even if the Done member did not qualify, and mandating that initial encounters would be under 30 minutes. To maximize profits, He allegedly put in a place an “auto-refill” function that allowed Done subscribers to elect to have a message requesting a refill be auto-generated every month. He wrote that Done sought to “use the comp structure to dis-encourage follow-up” medical care by refusing to pay Done prescribers for any medical visits, telemedicine consultation, or time spent caring for patients after an initial consultation, and instead paying solely based on the number of patients who received prescriptions.

“The defendants in this case operated Done Global Inc., an online telehealth website that prescribed Adderall and other highly addictive medications to patients who bought a monthly subscription. The defendants allegedly preyed on Americans and put profits over patients by exploiting telemedicine rules that facilitated access to medications during the unprecedented COVID-19 public health emergency,” said DEA Administrator Anne Milgram. “Instead of properly addressing medical needs, the defendants allegedly made millions of dollars by pushing addictive medications. In many cases, Done Global prescribed ADHD medications when they were not medically necessary. In 2022 the FDA issued a notice of shortages in prescription stimulants, including Adderall. Any diversion of Adderall and other prescription stimulant pills to persons who have no medical need only exacerbates this shortage and hurts any American with a legitimate medical need for these drugs. The DEA will continue to hold accountable anyone, including company executives, that uses telehealth platforms to put profit above patient safety.”

“As more health care needs are met through telemedicine, we will not tolerate fraud schemes that seek to recklessly exploit digital technologies,” said Honorable Christi A. Grimm of the Department of Health and Human Services Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to protect the enrollees of federal health care programs by ensuring that requirements for the appropriate, legal prescribing of stimulants and other drugs are always met, and those who choose to violate them are held accountable.”

He and Brody allegedly persisted in the conspiracy even after being made aware that material was posted on online social networks about how to use Done to obtain easy access to Adderall and other stimulants, and that Done members had overdosed and died. They also allegedly concealed and disguised the conspiracy by making fraudulent representations to media outlets to forestall government investigations and action and induce third parties to continue doing business with Done.

“Healthcare fraud is not a victimless crime. It levies a tremendous cost on our nation’s healthcare systems and economy,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Today’s announcement should serve as a reminder that it is only a matter of time before anyone engaging in fraudulent activity is caught and brought to justice.”

“Instead of prioritizing the health of their customers, He and Brody’s telemedicine company allegedly prioritized profits—more than $100 million worth—by fraudulently prescribing medications like Adderall and other stimulants,” said Chief Guy Ficco of IRS Criminal Investigation. “This led customers to addiction, abuse, and overdoses, which the company tried to conceal by making false representations to the media in order to deter oversight by government agencies.”

He, Brody, and others also conspired to defraud pharmacies and Medicare, Medicaid, and the commercial insurers to cause the pharmacies to dispense Adderall and other stimulants to Done members in violation of their corresponding responsibility; Medicare, Medicaid, and the commercial insurers to pay for the cost of these drugs; and Done members to continue to pay subscription fees to Done. He and others allegedly made false and fraudulent representations about Done’s prescription policies and practices to induce the pharmacies to fill Done’s prescriptions. As a result, Medicare, Medicaid, and the commercial insurers paid in excess of approximately $14 million.

The indictment also alleges that He and Brody conspired to obstruct justice after a grand jury subpoena was issued to another telehealth company and in anticipation of a subpoena being issued to Done, including by deleting documents and communications, using encrypted messaging platforms instead of company email, and ultimately failing to produce documents in response to a subpoena issued to Done by a federal grand jury.

If convicted, He and Brody each face a maximum penalty of 20 years in prison on th

[Registrant]U.S. Department of Homeland Security
[Language]日本語
[Location]Washington DC, DC

Posted : 2024/06/23
Published : 2024/06/23
Changed : 2024/06/23
Total View : 10 persons

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