Source- http://www.justice.gov/usao/nys/pressreleases/July13/DharayanetalArrestPR.php
FOR IMMEDIATE RELEASE
Wednesday, July 17, 2013
One Executive Has Pled Guilty to Accepting Bribes and
Kickbacks
Preet Bharara, the United States Attorney for the Southern
District of New York, Thomas O’Donnell, the Special Agent-in-Charge of the New
York Office of the U.S. Department of Health and Human Services, Office of
Inspector General (“HHS-OIG”), and Steven G. Hughes, the Special
Agent-in-Charge of the New York Office of the U.S. Secret Service today
announced charges against eight individuals for their alleged involvement in a
lucrative scheme in which information technology vendors paid over $2.3 million
in bribes and kickbacks to secure business from executives of a Manhattan-based
medical cost management company (the “New York Company”). The defendants
charged with paying the bribes and kickbacks are SARVESH DHARAYAN, SANJAY
GUPTA, VENKATA ATLURI, RANGARAJAN KUMAR, VADAN KUMAR KOPALLE, and DARREN
SIRIANI. The defendants charged with receiving the bribes and kickbacks are
ANIL SINGH and KEITH BUSH. DHARAYAN, GUPTA, KOPPALLE, and SIRIANI were arrested
this morning at their homes in New Jersey, and were presented in Manhattan
federal court this afternoon before U.S. Magistrate Judge James L. Cott. SINGH,
who was previously arrested in April 2013, pled guilty to honest services fraud
and other charges before U.S. District Judge Denise L. Cote on July 11, 2013.
BUSH, who was also arrested previously on July 12, 2013, is next scheduled to
appear in court for a pretrial conference on August 15, 2013. ATLURI and KUMAR
are not yet in custody.
Manhattan U.S. Attorney Preet Bharara said: “For the eight
defendants charged in this multi-million dollar scheme, bribes and kickbacks
were allegedly the cost they imposed for doing business with this medical-cost
management company. As today’s charges detail, the defendants achieved their
years-long fraud through fake companies, sham invoices and made-up consulting
services. Today’s actions underscore our commitment to work with our law
enforcement partners to bring to justice individuals who break the law out of
greed.”
HHS-OIG Special Agent-in-Charge Thomas O’Donnell said: “This
scheme was motivated by greed and it deprived its victim, a company in the
health care field, of the honest labor of its employees. We will continue to
aggressively investigate those who pay kickbacks and bribes to gain an
advantage in the public and private health care sectors.”
USSS Special Agent-in-Charge Steven G. Hughes said: “The
Secret Service continues to enjoy its partnership with the New York Office of
the U.S. Department of Health and Human Services, Office of Inspector General.
We find partnerships such as this to be an effective way to share resources and
stop criminals from continuing to engage in fraudulent schemes.”
According to the allegations contained in the Complaint, the
Informations filed against BUSH and SINGH, and other statements made in
Manhattan federal court:
SINGH was employed as a Senior Vice President and the Chief
Information Officer at the New York Company, which provided nation-wide medical
cost management solutions including, among other things, medical reimbursement
services, and BUSH was employed as the company’s Director of Database
Administration. SINGH and BUSH had considerable influence over the selection of
vendors, specifically vendors of database administrators (“DBAs”), hired by the
New York Company.
From 2008 to September 2012, various individuals
collectively paid over $2.3 million in money and other benefits to SINGH and
BUSH in exchange for SINGH’s and BUSH’s agreement to steer millions of dollars
of the New York Company’s DBA business to them. Specifically, as alleged:
- DHARAYAN,
the owner of a New Jersey information technology company (“Vendor 1”) and
GUPTA, an employee of Vendor 1, paid approximately $1,722,620 in kickbacks
and bribes to BUSH and SINGH in exchange for receiving DBA business from
the New York Company. From 2010 to 2012, the New York Company paid Vendor
1 approximately $6,625,479.20 for placing DBAs with the New York Company.
- ATLURI,
the owner of another New Jersey information technology company (“Vendor
2”), paid approximately $190,436.75 in kickbacks and bribes to BUSH and
SINGH in exchange for receiving DBA business from the New York Company.
From 2008 to 2012, the New York Company paid Vendor 2 approximately
$11,495,804.88 for placing DBAs with the New York Company.
- KUMAR
paid approximately $247,634 in kickbacks and bribes to BUSH and SINGH in
exchange for their agreement to steer DBA business to another New Jersey
information technology company (“Vendor 3”). From 2009 to 2012, the New
York Company paid Vendor 3 approximately $2,593,210.38 for placing DBAs
with the New York Company.
- KOPALLE,
who was in charge of delivery and operations at a Texas information
technology company (“Vendor 4”), paid approximately $142,967.50 in
kickbacks and bribes to BUSH and SINGH in exchange for receiving DBA
business from the New York Company. From 2009 to 2010, the New York
Company paid Vendor 4 approximately $1,035,660 for placing DBAs with the
New York Company.
- SIRIANI,
the owner and operator of another New Jersey information technology
company (“Vendor 5”) paid approximately $23,000 to $29,000 in cash
kickbacks and bribes to BUSH and SINGH in exchange for receiving business
from the New York Company. SIRIANI also paid for hotel rooms in Las Vegas
and Costa Rica, deep sea fishing, massages, sports tickets, and other things,
all in exchange for receiving business from the New York Company. From
2008 to 2012, the New York Company paid Vendor 5 approximately
$1,177,600.91 for various services and products.
According to the Complaint, DHARAYAN, GUPTA, ATLURI, KUMAR,
and KOPALLE paid the kickbacks and bribes through conduit companies established
by BUSH and SINGH for the very purpose of disguising the true nature and origin
of the illegal payments. To further conceal the bribery and kickback scheme,
BUSH and SINGH sent false invoices to the conduit companies for consulting
services that never occurred. Many of the kickbacks and bribes were paid
pursuant to these false invoices.
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DHARAYAN, 42, of Edison, New Jersey, GUPTA, 38 of East
Windsor, New Jersey, ATLURI, 41, of Monmouth Junction, New Jersey, KUMAR, 47,
of Monroe, New Jersey, KOPALLE, 43, of Edison, New Jersey, and SIRIANI, 45, of
Matawan, New Jersey, were each charged with one count of conspiracy to commit
honest services fraud, which carries a maximum term of 20 years in prison, one
count of conspiracy to violate the Travel Act, which carries a maximum term of
five years in prison, one count of honest services fraud, which carries a
maximum term of 20 years in prison, and one count of violating the Travel Act,
which carries a maximum term of five years in prison. DHARAYAN, GUPTA, ATLURI,
KUMAR, and KOPALLE were also charged with one count of conspiracy to commit
money laundering, which carries a maximum term of 20 years in prison.
SINGH, 40, a resident of East Brunswick, New Jersey pled
guilty to one count each of conspiracy to commit honest services fraud,
conspiracy to violate the Travel Act, honest services fraud, violating the
Travel Act, and conspiracy to commit money laundering. He faces a maximum
penalty of 70 years in prison on all counts. BUSH, 41, a resident of Rahway,
New Jersey, is charged with one count each of conspiracy to commit honest
services fraud, conspiracy to violate the Travel Act, honest services fraud,
violating the Travel Act, and conspiracy to commit money laundering. He also
faces a maximum penalty of 70 years in prison if convicted on all counts.
Mr. Bharara praised the outstanding efforts of HHS-OIG and
the U.S. Secret Service in the investigation. He also thanked the New York
Company for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Complex Frauds
Unit. Assistant U.S. Attorney Jason P. Hernandez is in charge of the
prosecution. Assistant U.S. Attorney Christine Magdo of the Office’s Asset
Forfeiture Unit is responsible for the forfeiture aspects of the case.
The charges and allegations contained in the Complaint and
the Information filed against BUSH are merely accusations, and the defendants
are presumed innocent unless and until proven guilty.
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