Northern Alabama Doctor and Practice Manager Convicted for Conspiring to Unlawfully Distribute Opioids

A Northern Alabama doctor and her husband, who also served as her practice manager, pleaded guilty today for their roles in unlawfully distributing opioids and other controlled substances while the doctor was absent from the clinic.   

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Prim F. Escalona of the Northern District of Alabama, Special Agent in Brad L Byerly of the U.S. Drug Enforcement Administration’s (DEA) New Orleans Field Division, and Special Agent in Charge Johnnie Sharp, Jr. of the Federal Bureau of Investigation’s (FBI) Birmingham Field Office made the announcement.

Elizabeth Korcz, M.D., 47, a licensed physician, and Matthew Korcz, 47, her husband and former practice manager, both of Hoover, Alabama, pleaded guilty to conspiracy to unlawfully distribute controlled substances.  As part of the plea, the defendants also agreed to forfeit $46,181.79.  Sentencing will be scheduled at a later date.

As part of their guilty pleas, the defendants admitted to providing dangerous doses of hydrocodone to patients who were not examined by a medical professional and while Dr. Korcz was absent from their clinic.  The defendants owned and operated Hoover Alt MD, a purported medical clinic with an in-house dispensary.  The defendants did not employ registered nurses or other qualified medical professionals, despite Dr. Korcz’s absences.  The defendants admitted to allowing hydrocodone to be dispensed from their in-house dispensary while Dr. Korcz was out of state on multiple occasions, according to the plea agreement. 

DEA and FBI investigated the case.  Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama are prosecuting the case.

The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force.  Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills.  Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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    In U.S GAO News
    The Small Business Administration (SBA) develops its subsidy cost estimates for the 7(a) loan guarantee program—that is, estimates of the program's net long-term cost to the government—using a cash flow model. The model uses historical data, econometric equations, and macroeconomic projections to estimate cash flows—such as guarantee fees, SBA purchases of defaulted loans, and recoveries on those loans—for the loans SBA expects to guarantee in the next fiscal year. The net present value of the cash flows (value in current dollars) is the subsidy cost estimate. SBA generally incorporated key elements of subsidy cost estimation into its estimates for the 7(a) program for the fiscal year 2020 budget. Specifically, GAO found that SBA's estimation process was largely consistent with eight key elements GAO previously identified that help ensure subsidy estimates are supported, reliable, and reasonable. For example, SBA generally validated historical data, documented the cash flow model and key assumptions, analyzed the sensitivity of estimates to alternative assumptions, and had documented policies and procedures. SBA made changes in its estimation process that collectively increased the 7(a) program's subsidy cost to $99 million for fiscal year 2020 (a 0.33 percent subsidy rate when expressed as the cost per dollar of credit assistance) from $0 for fiscal year 2019 (0 percent subsidy rate). Some of these changes were routine updates to data and economic assumptions used in the cash flow model, while others were revisions to the estimation process. Additionally, some individual changes increased the subsidy costs, while others decreased it. Some of the changes that had the largest impact on the subsidy rate included the following: Incorporating the President's economic assumptions for fiscal year 2020 decreased the rate by 0.27 percentage points. Updating the basis for the size and composition of the loan cohort SBA expected to guarantee in fiscal year 2020 increased the rate by 0.21 percentage points. Revising the methodology for estimating purchase amounts for defaulted loans to better reflect the outstanding loan balance at the time of purchase increased the rate by 0.21 percentage points. The 7(a) program is SBA's largest loan guarantee program for small businesses, with about $95 billion in outstanding loan principal as of the end of fiscal year 2019. Federal agencies that provide credit assistance are generally required to estimate the net long-term cost to the government—known as the subsidy cost—for each annual cohort of loans. SBA initially estimated a zero subsidy cost for each cohort from fiscal years 2014 through 2019, but estimated that the fiscal year 2020 cohort would have a positive subsidy cost and require appropriations. GAO was asked to evaluate SBA's subsidy estimation process for the 7(a) program. This report examines (1) how SBA estimates 7(a) subsidy costs, (2) the extent to which SBA incorporated key elements of subsidy cost estimation into its estimation process for the fiscal year 2020 budget, and (3) the changes SBA made in its estimation process for the fiscal year 2020 budget. GAO reviewed SBA documentation on its estimation process, including information on SBA's cash flow model, and compared SBA's process to key elements that GAO previously identified ( GAO-16-269 ). GAO also interviewed officials from SBA, the Office of Management and Budget, and outside auditors and contractors that annually review SBA's process and model. For more information, contact William B. Shear at (202) 512-8678 or shearw@gao.gov.
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  • Rule of Law Assistance: State and USAID Could Improve Monitoring Efforts
    In U.S GAO News
    The Department of State (State) Bureau of International Narcotics and Law Enforcement Affairs (State/INL) and the U.S. Agency for International Development (USAID) provided sufficient documentation for GAO to conclude that they followed most key practices for monitoring rule of law assistance for the awards we reviewed from selected countries. However, the agencies did not provide sufficient documentation demonstrating that they followed other key practices. Overall, State/INL followed these practices in most cases and USAID did so in almost all cases. Specifically, GAO's review of 19 State/INL and USAID projects found that USAID in all cases, and State/INL in most cases, followed key practices for planning a monitoring approach, such as developing project goals, objectives, and performance indicators. However, State/INL did not consistently demonstrate that project representatives included project goals and objectives in monitoring plans, and did not consistently identify risks in those plans (see fig.). Furthermore, neither agency could demonstrate that project representatives consistently assessed and approved monitoring reports from implementing partners. Following key monitoring practices helps to ensure that agencies stay well-informed of project performance and take corrective action when necessary, and that projects achieve their intended results. Without complete documentation, management cannot be sure that these practices are being followed. State/INL and USAID Alignment with Key Practices for Monitoring Rule of Law Assistance State and USAID have various processes to conduct, share, and use rule of law project evaluations to improve future efforts. Both agencies disseminate evaluations through online systems, briefings, and presentations, and have established approaches to track the implementation of evaluation recommendations, such as through spreadsheets or other documentation. The agencies use these evaluations in various ways to inform project design and strategic planning. Rule of law strengthens protection of fundamental rights and serves as a foundation for democratic governance and economic growth. According to State, strengthening judicial and legal systems in certain countries is vital to U.S. national security interests. State and USAID allocated over $2.7 billion for rule of law assistance overseas from fiscal years 2014 through 2018. GAO was asked to review monitoring and evaluation of U.S. rule of law assistance around the world. This report examines, among other objectives, the extent to which the agencies followed key practices for monitoring rule of law projects in selected countries, and processes agencies have in place to use evaluations to inform future rule of law assistance. GAO analyzed relevant laws and agency policies and other documents, and interviewed officials in Washington, D.C., and four countries—Colombia, Kosovo, Liberia, and the Philippines—selected based on funding amounts and other factors. GAO recommends that State/INL establish procedures to ensure project goals, objectives, and risks are identified in monitoring plans. GAO also recommends that State/INL establish and USAID enhance procedures to ensure project staff assess and approve monitoring reports. State and USAID concurred with GAO's recommendations. For more information, contact Chelsa Kenney Gurkin at (202) 512-2964 or gurkinc@gao.gov.
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  • United States Joins Intergovernmental Forum on Mining
    In Crime Control and Security News
    Office of the [Read More…]
  • Disaster Block Grants: Factors to Consider in Authorizing a Permanent Program
    In U.S GAO News
    What GAO Found In March 2019, GAO reported that because the Community Development Block Grant Disaster Recovery (CDBG-DR) program lacks permanent authority and regulations—unlike other disaster assistance programs—appropriations require the Department of Housing and Urban Development (HUD) to customize grant requirements for each disaster in Federal Register notices—a time-consuming process. GAO identified challenges associated with the lack of permanent statutory authority, including delays in disbursal of funds and the need for grantees to manage multiple grants with different rules. For example, GAO found it took HUD 5 months after the first appropriation for the 2017 hurricanes (Hurricanes Harvey, Irma, and Maria) for HUD to issue the first Federal Register notice establishing the grant requirements. Officials from one of the 2017 CDBG-DR grantees told GAO of challenges managing multiple CDBG-DR grants it received over the years because each grant had different rules. HUD officials noted then that permanently authorizing CDBG-DR would allow HUD to issue permanent regulations for disaster recovery. GAO identified factors to consider when weighing whether and how to permanently authorize a program for unmet disaster assistance needs. These factors, which are based on GAO's body of work on emergency management and past observations of broader government initiatives, include the following: Clarify how the program would fit into the broader federal disaster framework. GAO has emphasized the importance of articulating a program's relationship to other programs and of aligning the program within organizations with compatible missions and goals. This is particularly important with disaster programs, given the approximately 30 agencies involved in disaster recovery. Clarify the purpose and design the program to address it. Greater clarity about the purpose of CDBG-DR could help resolve implementation issues GAO has previously identified, such as how much time grantees should have to spend funds and the proportion of funds that should be distributed to renters. Consider the necessary capacity and support infrastructure to implement the program. GAO's prior work found that state, local, territorial, and tribal grantees and federal agencies faced capacity challenges in administering and overseeing federal grant funds, including CDBG-DR. Capacity challenges for grantees may contribute to fraud risks and slow expenditure of funds. Why GAO Did This Study Legislation proposed over the years would permanently authorize CDBG-DR or a similar program, but no proposal has been enacted. Since 1993, Congress has provided over $90 billion in supplemental appropriations through HUD's CDBG program to help communities recover from disasters. Just since 2001, HUD has issued over 100 Federal Register notices linked to these funds. Communities use these funds to address unmet needs for housing, infrastructure, and economic revitalization. HUD is one of approximately 30 federal agencies tasked with disaster recovery. This testimony discusses (1) challenges associated with the lack of permanent statutory authority for CDBG-DR and (2) factors to consider when weighing whether and how to permanently authorize CDBG-DR or a similar program. It is based primarily on GAO's March 2019 and May 2021 reports on CDBG-DR (GAO-19-232 and GAO-21-177) and GAO reports issued between February 2004 and June 2019 that identified factors to consider in making critical federal policy decisions. For those reports, GAO reviewed documentation on CDBG-DR and its observations of efforts to reorganize or streamline government, among other things.
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  • Assistant Attorney General Makan Delrahim Announces Re-Organization of the Antitrust Division’s Civil Enforcement Program
    In Crime News
    The Department of Justice’s Antitrust Division announced today that it is creating the Office of Decree Enforcement and Compliance and a Civil Conduct Task Force.  Additionally, it will redistribute matters among its six civil sections in order to build expertise based on current trends in the economy.
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