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1 ALANA W. ROBINSON
Acting U.S. Attorney
2 BENJAMIN J. KATZ
California State Bar No. 272219
3 MARC PLETCHER
Colorado State Bar No. 034615
4 Assistant U.S. Attorney
Federal Office Building
5 880 Front Street, Room 6293
San Diego, California 92101-8893
6 Telephone: (619) 546-9604
E-mail: benjamin.katz@usdoj.gov
7
Attorneys for Plaintiff
8 United States of America
9 UNITED STATES DISTRICT COURT
10 SOUTHERN DISTRICT OF CALIFORNIA
11 UNITED STATES OF AMERICA, Case No. 17cv500-JLS
12 Plaintiff, AMENDED COMPLAINT
FOR FORFEITURE
13 v.
14 REAL PROPERTY KNOWN AS 5904 AND
5908 GRASSHOPPER ROAD,
15 BIRCHWOOD, TENNESSEE,
16 REAL PROPERTY KNOWN AS 2520,
2522, 2424, 2538 KEITH STREET NW,
17 CLEVELAND, TENNESSEE,
18 REAL PROPERTY KNOWN AS BAKER
LANE & BLYTHE FERRY LANE,
19 PARCELS 071-048.04 & 072-105 IN
BIRCHWOOD, TENNESSEE,
20
REAL PROPERTY KNOWN AS 3601
21 BLYTHE FERRY LANE IN
BIRCHWOOD, TENNESSEE,
22
INCLUDING ALL APPURTENANCES,
23 IMPROVEMENTS, AND ATTACHMENTS
THEREON,
24
Defendants.
25
26 By way of verified amended complaint against the above Defendants, 5904
27 and 5908 Grasshopper Road, Birchwood, Tennessee (hereinafter Defendant
28 Property #1); 2520, 2522, 2424, 2538 Keith Street NW, Cleveland, Tennessee
Case 3:17-cv-00500-JLS-WVG Document 20 Filed 08/17/17 PageID.107 Page 2 of 11
1 (hereinafter Defendant Property #2); Baker Lane & Blythe Ferry Lane, Parcels 071-
2 048.04 and 072-105 in Birchwood, Tennessee (hereinafter Defendant Property #3);
3 and 3601 Blythe Ferry Lane, Birchwood, Tennessee (hereinafter Defendant
4 Property #4), (collectively Defendant Properties), the United States alleges:
5 1. This Court has jurisdiction over this action by virtue of the provisions of
6 Title 28, United States Code, Section 1355, and Title 18, United States Code,
7 Sections 1956(a)(2)(A), 1956(h), 981(a)(1)(A), and 981(a)(1)(C), because the
8 defendants are properties involved in the offenses of money laundering and
9 conspiracy to money launder, and also are properties constituting proceeds traceable
10 to specified unlawful activity, in violations of Title 18, United States Code, Sections
11 1347 and 1956.
12 2. Venue is proper within the Southern District of California pursuant to
13 Title 28, United States Code, Sections 1391 and 1355(b)(1)(A), and Title 18, United
14 States Code, Section 981(h) because some of the acts or omissions giving rise to the
15 forfeiture occurred in this district.
16 3. The defendant real properties, with all appurtenances, improvements,
17 and attachments thereon, are located in the Eastern District of Tennessee. They are
18 more fully identified and described as follows:
19 Defendant Property #1
20 5904 and 5908 Grasshopper Road, Birchwood, Tennessee
21 BEGINNING on the Southern Right of Way of Grasshopper
Road, said point also being the Northeasternmost comer of the
22 William Carpenter property as described in Book 3971, page 734,
in the Register's Office of Hamilton County, Tennessee; thence
23 from said point of beginning and following along said right of
way, South 59 degrees 40 minutes 90 seconds East, 52.45 feet to
24 a point; thence leaving said right of Way South 12 degrees 43
minutes 35 seconds West, 241.64 feet to a point; thence South 32
25 degrees 28 minutes 45 seconds West, 241.78 feet to a point;
thence South 22 degrees 00 minutes 25 seconds West, 523.44 feet
26 to a point; thence South 40 degrees 18 minutes 11 seconds West,
771.65 feet to a point; thence South 42 degrees 58 minutes 46
27 seconds East, 360.45 feet to a point; thence South 26 degrees 39
minutes 06 seconds West, 588.36 feet to a point;- thence South 27
28 degrees 36 minutes 05 seconds West, 392.68. feet to a point;
thence South 30 degrees 07 minutes 57 seconds West, 158.32 feet
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1 16. Between January 2015 and May 2015, CHOICE MD employed C.L., an
2 emergency room physician licensed in Georgia.
3 17. Between December 2014 and May 2015, CHOICE MD paid S.V., C.C.,
4 and C.L. to write 3,759 prescriptions for compounded medications for TRICARE
5 beneficiaries located mainly in the Southern District of California.
6 18. These compounded prescriptions were filled by THE MEDICINE
7 SHOPPE and shipped from Utah to California.
8 19. Nobody at CHOICE MD treated or examined the TRICARE
9 beneficiaries before prescribing them the compounded medications.
10 20. CHOICE MD did not bill TRICARE for medical examinations or other
11 services, as is customary when providing legitimate services to insured patients.
12 21. Instead, J. COLLINS and A. COLLINS profited via kickback payments
13 from THE MEDICINE SHOPPE. These payments were in exchange for J.
14 COLLINS and A. COLLINS recruiting TRICARE beneficiaries to receive
15 compounded medications from THE MEDICINE SHOPPE and employing doctors to
16 write prescriptions for these beneficiaries that could be filled by THE MEDICINE
17 SHOPPE.
18 22. THE MEDICINE SHOPPE submitted claims to TRICARE for filling
19 the compounded prescriptions written by doctors employed by CHOICE MD and
20 was paid a total of $62,589,666 based these claims.
21 23. Between September 2014 and May 2015, a total of approximately
22 $45,369,567.87 was transferred to J. COLLINS and A. COLLINS from bank
23 accounts associated with two companies controlled by the owners of THE
24 MEDICINE SHOPPE, CD Medical, Inc. and MEDWORX Compounding, LLC.
25 24. To find TRICARE beneficiaries to whom prescriptions could be written,
26 J. COLLINS, A. COLLINS, and others, paid a number of active duty marines
27 stationed in the Southern District of California to recruit their colleagues.
28 //
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1 COLLINS and A. COLLINS. The source of funds in this account was the kickback
2 payments made to J. COLLINS and A. COLLINS from CD Medical, Inc and
3 RXPRESS Medical, Inc.
4 31. Defendant Property #4 was purchased by J. COLLINS and A.
5 COLLINS on February 17, 2015, and deeded in the name of A. COLLINS. The total
6 purchase price was $843,149.69 and there is no mortgage lien. The purchase was
7 with funds from a checking account for which J. COLLINS and A. COLLINS were
8 the authorized signatories. The source of funds in this account was the kickback
9 payments made to J. COLLINS and A. COLLINS from CD Medical, Inc. and
10 RXPRESS Medical, Inc.
11 32. By virtue of the acts set forth in the attached Affidavit, the Defendant
12 Properties are subject to forfeiture pursuant to Title 18, United States Code, Section
13 981(a)(1)(A) and/or 981(a)(1)(C).
14 33. The United States does not request authority from the Court to seize the
15 Defendant Properties at this time. The United States has, as provided by Title 18,
16 United States Code, Section 985(b)(1) and (c)(1):
17 a. Post notice of the Complaint on the Defendant Properties; and
18 b. Served notice of this action on the Defendant Property owners
19 along with a copy of the Complaint; and
20 c. Filed lis pendens notices in county records of the Defendant
21 Properties status as defendants in this in rem forfeiture action.
22 34. The United States will at an appropriate time execute a writ of entry for
23 the purpose of conducting an inspection and inventory of the property; and, as
24 provided by Title 18, United States Code, Section 985(b)(1) and (c)(1).
25 //
26 //
27 //
28 //
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1 WHEREFORE, the United States prays that due process issue to enforce the
2 forfeiture of the Defendant Properties and that due notice be given to all interested
3 parties to appear and show cause why said forfeiture of the defendant real properties
4 should not be decreed, that the defendant real properties be condemned and forfeited
5 to the United States to be disposed of according to law, and for such other and further
6 relief as this Honorable Court may deem just and proper.
7 DATED: August 17, 2017
8 Respectfully submitted,
9 ALANA W. ROBINSON
Acting U.S. Attorney
10
s/ Benjamin J. Katz
11 BENJAMIN J. KATZ
MARC PLETCHER
12 Assistant U.S. Attorneys
Attorneys for the United States
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