Professional Documents
Culture Documents
US v. Dennis Nobbe: Complaint
US v. Dennis Nobbe: Complaint
US v. Dennis Nobbe: Complaint
N o. 1:20-M 1-03236-BECERRA
V.
D EN NIS N O BBE,
D efendant.
/
CR IM IN A L C O VE R SH E ET
1. Did this matter originate from a matterpending in the CentralRegion ofthe United States
Attorney'sOfficepriortoAugust9,2013(M ag.JudgeAliciaValle)? Yes X No
D id this m atteroriginate from a m atterpending in the N orthern Region ofthe United States
Attorney'sOftk epriortoAugust8,2014(M ag.JudgeShaniekM aynard)? Yes X No
Did thism atteroriginate from a matterpending in the CentralRegion ofthe United States
Attorney'sOfficepriortoOctober3,2019(M ag.JudgeJaredStrauss)? Yes X No
RO B ZIN K
CH IEF
CRIM INAL DIVISION ,FRAUD SECTION
BY : '
SA A M .CLIN GA N
FL SpecialB arN o.A 5502508
U .S.D epartm entofJustice
Crim inalD ivision,Fraud Section
1400 N ew York A venue,N .W .
W ashington,D .C.20005
Phone:(202)880-2232
Sara.clingan@ usdoj.gov
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 2 of 22
A(.
)9I(Rcv.1I/11) CriminalComplaint
United StatesofAmerica )
V. )
DENNIS NO BBE, ) CaseNo. l:20-M J-03236-BECERRA
)
)
)
)
/)'t(/-
t?t3titllttft
j,
)
C R IM IN A L C O M PLA IN T
1,the coluplainantin thiscase,state thatthe follow ing istrue tothe bestofmy know ledge and belief.
Onoraboutthedatets)of June2017-JqIy2020 inthecotlnty of Miami-Dade inthe
Sgqth>qq Districtof
. Flpqi
jp ,thedefendantts)violated:
Codeu% c/ï(?n Qt/ènseDescription
18U.S.C.j 1349 ConspiracytoCommitHeaIthCareFraudand Wire Fraud
18 U.S.C.j 1347 HeaI
thCare Fraud
18 U.S.C.j 1343 W ire Fraud
18 U.S.C.j 1014 Making False Statementstoa FinancialInstitution andSBA
18 U.S.C.j 1956(a)(1)(B)(1) MoneyLaundering
18 U.S.C.j1956(h) Conspiracyto CommitMoney Laundering
dContinuedontheattachedsheet. în
Lynnette Al
varez-KarnesrSpecialAgent!FBI
l)
;r?
ï
lltc:/tl
til'tg47A?:/tl
:
t/éJ
Date: 7.23.20
Jt 'e'
. .signature
years. I nm presently assigned to the Hea1th Care Fraud Strike Force in M iam i,Florida. M y
health carefraud.During the course ofm y careerwith FBI,Ihave investigated ntlm erousfinancial
crim es involving balzk fraud, w ire fraud, health care fraud, kickback schenaes, and naoney
laundering.
seizure and arrest warrant operations. Recently,lhave been assigned to work with the U.S.
3. This aftidavitis subm itted in supportof a crim inalcom plaint charging DEN N IS
including federaland locallaw enforcem entofficials whom lknow to be reliable and trustw orthy.
The facts contained herein have been obtained by interviewing w itnesses and exam ining
1
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 4 of 22
documents obtained in the course of the investigation as wellas through other means. This
m ultiple conspiracies and fraud schem es, tbrough which he and others defrauded patients,
open accounts through Carecredit, so that NOBBE could protit off of his patients through
business,m any ofwhom were low-incom eand did notspeakEnglish,to useCarecredittopay for
FinancialInstitution 1 w ould deposit the value of the charge,less a transaction fee, into a bank
2
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 5 of 22
portion ofthedeposited fundsfrom Carecreditasa kickback and wirethe rem ainderto NOBBE.
To concealthe pum ose ofthe large w iretransferpaym entsfrom Physician 1 to N O BBE, N OBBE
executed sham m anagem ent service and lease contracts w ith Physician 1. In a consensual
recording made by Physician 1,N OBBE explained thathe did thisto çdcover''forthe dsillegal''
could nothave received paym ent from M edicare ifNOBBE subm itted them himself, because
M edicare w ould notpay forsuch services ifrendered by a chiropractor. Physician 1 and N OBBE
Finally, the investigation also revealed that, in or around M ay 2020, after the
em ergence of the CO V 1D -19 pandem ic,N OB BE m ade false and fraudulent representations in a
The CarecreditProzram
11. Financiallnstitution 1 offered to the public Carecredit,a health care credit card
and provided by a pre-approved netw ork of health care providers w ho w ere enrolled w ith
3
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 6 of 22
enrolled in Carecreditagreed to abideby,am ong others,the following term s,each ofwhich was
m aterialto FinancialInstitution 1:
Carecredit providers could only process charges for the sale of goods or care
Carecreditcardholders(i.e.,thepatientsreceivingtheservices)thatthe deferred
interestprogram forCarecreditcardscanied an annualpercentage rateof26.99.
Clbeneficiaries.''
Code,Section24(b).
M edicare progrnm s covering different types of benetks w ere separated into
differentprogram tsparts.'' PartB ofthe M edicare Program w asa m edicalinslzrance program that
4
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 7 of 22
covered,am ong other things,certain physician and outpatient services,and other health care
benefits,itemsand services.
CoastSelwiceOptions,Inc.(diFirstCoasf')pursuanttoacontractwithHHS.
Physicians, clinics, and other health care providers that provided services to
M edicare beneficiaries were able to apply forand obtain a çiprovider num ber.'' A health care
am ong otherthings,the beneticiary'snam e and M edicare identification num ber,the services that
w ere perform ed for the beneticiary, the date that the services w ere provided,the cost of the
services,and the nam e and provider num ber of the physician or other health care provider w ho
medically necessary and ordered by licensed doctors or other licensed, qualified health care
providers.
Payments under M edicare PartB were often m ade directly to the health care
of paym entto the health care provider. Once such an assignm enttook place,the health care
M edicare.
5
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 8 of 22
related health care benefits, item s, or services m ust be m edically necessary and ordered by a
licensed doctor or other licensed,qualified health care provider in order to be reim bursed by
M edicare.
for reim bursement by M edicare under PartB. M edicare would reim burse for manualspinal
m anipulation services only when certain conditions w ere m et, such as w hen the services w ere
bUSiness located at1490 W est49thPlace,Suite 203yH ialeah,Florida, in M iam i-D ade County.
23. Physician 1 w as a residentof Brow ard County and a clinical neurologistm edical
medicine($fD.O.'').Physician2wasenrolledasaMedicareproviderandaCarecreditprovider.
25. In oraround August2012,NOBBE wassubjectto a disciplinary action by the
Florida Departmentof Health,which filed an administrative com plaintcharging NOBBE with
which is publicly available through the Florida Departm ent of Hea1th W ebsite,alleges that
N O BBE offered pre-paym ent plansto his patientsthrough w hich patients could purchase one or
6
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 9 of 22
m ore treatm ents in advance. A ccording to the com plaint,am ong other things,N OBBE violated
Florida 1aw and exploited patients for financialgain by offering the plans w ithoutdocum enting
sufticientmedicalnecessity justifying the care and treatments included in the plans. See
https://appsmqa.doh.state.i.us/M oAsearchsea ices/Healthcreproviders/Licenseverifcation?Li
c1nd=2310&Procde=501&org=%20 (lastvisited July 14,2020). NOBBE signed a settlement
agreementto resolvethem atter,in whichNOBBE neitherconfirm ed nordenied theallegationsin
26. Physician 1 and Physician 2 are cooperating w ith the governm ent in this
D epartm ent of Hea1th, N O BBE continued to offer patients Pre-paym ent Plans through the
nam eson N OB BE'Sbehalf. A ccording to statem entsPhysician land Physician 2 provided to law
enforcem ent agents, N O BBE instructed Physician and Physician 2 to conceal N O BBE'S
and thatN OBBE,rather than Physician 1,w ould charge patients through Physician 1's account
7
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 10 of 22
29. U sing Physician 1'sCarecredit account,N O BBE induced his patients to apply to
accounts for services that Physician 1 purportedly would provide within the nextthirty days,
ratherthan Physician 1. ln addition,N O BBE generally did notrenderservicesw ithin thirty days,
value NOBBE or NOBBE'S staff charged to the cardholders,less transaction fees,into barlk
l,lessa kickback s/he retained forhim /herself,to N OBBE. Financiallnstitution 1 also billed the
M edicare provider num ber to subm it, via interstate w ire com m unication, false and fraudulent
claim s to M edicare. M edicare data reflects that betw een approxim ately Septem ber 2017 and
8
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 11 of 22
with NOBBE,and atN OBBE'S instruction,between approxim ately Decem ber 2017 and June
ending in 2701.
32. To concealthe nature of the paym entsfrom Physician 1 to N OBBE,N O BBE and
Physician 1 executed three shnm agreem ents,w hich Physician 1 provided to law enforcem ent,
which falsely stated,nm ong otherthings,thatPhysician 1had engaged N O BBE to provide various
34. Following Physician 1'sterm ination from the Carecreditprogram ,NOBBE then
exam ple, on or about June 29,2018,N O BBE sent a text m essage to Physician 2 rem inding,
çsR em em ber keep Dr. N obbe or D ynam ic M edical or addresses you'll be at out of the
conversationl''
9
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 12 of 22
NOBBE,rather than Physician 2,would charge patients and render the services pup ortedly
37. In direct contravention and violation of Financiallnstitution 1's term s for the
rendered m onths in the futlzre, but that w ere often not provided at all. Patients regularly
complained thatthey had been charged for services notrendered. According to Physician 2,
38. Betw een in or around A ugust2018 and in or around Septem ber 2019,Financial
lnstitution 1 deposited approximately $713,876 via interstate wire into a bank accountheld by
Physician 2 forCarecreditchargescaused by N OBBE. Pursuantto an agreem entw ith N OBBE,
and atN O BBE'S instnzction,betw een in oraround Jtm e 2018 and in or arotm d Septem ber2019,
Follow ing num erous patient com plaints, Financial Institution term inated
thatN O BBE,ratherthan Physician 1,w ould receive funds obtained from FinancialInstitution 1
10
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 13 of 22
N OBBE would retain 80 percentofthe funds obtained through their schem es and Physician 1
concerning a potentialbank fraud investigation. ln the conversation,N O BBE and Physician 1can
be heard discussing the t680/20 split,''referring to the verbal agreem ent for Physician 1 to keep
approxim ately 20% of paym ents received from N OBBE 'S Carecredit charges and to rem it the
rem aining 80% to N O BBE. The recordingsalso captured N OBBE and Physician 1 discussing the
M anagem entand Lease agreem entexecuted by N O BBE and Physician 1 to concealthetrue nature
t'Ifyou say that,it's illegal. Throw thatoutofyour universe,okay? The only w ay thisis legalis
basically an agreem entwhereyou leasem y office,m y staff,you pay m e am anagem entagreem ent,
and you leased the equipm ent. lt's in thatcontract. W e had thisdiscussion before,butthe heat's
on,and that'sw hy you need to getyour story correct.... Yottr story basically has to be this is a
signed contractw e did long before anybody waspaid.... Our storiesneed to be on the sam e page
here.... Y ou need to kind ofthirlk is the only w ay w e can stay legal on this is by using that
eontrad ,that'sthe only w ay thisis going to w ork. Because the percentthing isillegal.''
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 14 of 22
44. Therecording also capm red N OBBE stating to Physician 1,ttW hatareyou gonna
N obbe's staff.''
charged via Carecredit. Patients generally told investigatorsthatthey w ere charged thousandsof
onwhosebehalfchargesweresubmitted(Physician1orPhysician2)and/orthatwerenotprovided
atall.A lthough m any patientsw ere ableto successfully dispute theirchargesthrough Carecredit,
N OBBE.
46. For exam ple,Patient E.H .becam e a patient of D ynam ic M edical Services in or
around D ecem ber 2017. E.H .w as offered a Carecreditcard,w hich D ynam ic M edicalServices
E.H.'S card was actually charged approxim ately $7,000. Although E.H.was charged through
Physician 1's Carecreditaccountfor servicesthatpurportedly would be rendered by Physician 1,
E.H .told 1aw enforcem entagentss/he neverreceived treatm entfrom Physician 1. E.H .w asupset
and unable to pay the additionalCarecreditcharges. ln February 2018,E.H .filed a dispute w ith
Carecreditfornon-receiptof services.
12
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 15 of 22
1aw enforcem entagents thats/he neverreceived treatm entfrom Physician 2. M .G .S.attem pted to
49. For exam ple,Patient R.R .w entto D ynam ic M edical Services for pain in his/her
knee and spine afterseeing a com m ercialon Telem undo.R .R.inform ed investigatorsthat,during
visits at D ynam ic M edical Services, R.R .received treatm ents from N OB BE, w hich lasted
coverthese treatm ents. R .R.stopped going to D ynam ic M edialServices because the treatm ents
Services for pain after seeing a com m ercial on television. D uring visits at Dynam ic M edical
Dynam ic M edical Services staff inform ed I.R. that M edicare w ould cover these treatm ents.
M edicare claim s data obtained during the investigation retlects that Physician 1's M edicare
13
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 16 of 22
stimulation'
,andX-rays.M edicarepaidapproxim ately$1,512 ontheseclaim s.Noneoftheclaim s
subm itted on behalf of patients R.R. or I.R. w ere eligible for reim btzrsem ent from M edicare,
and regulations, these services are not eligible for reim bursem ent from M edicare if they are
TheCoronavirusAid,Relief,andEconomicSecurityICICARES''IActisafederal
law enacted in oraround M arch 2020 and designed to provide em ergency financialassistance to
the m illions of A m ericans w ho are suffering the econom ic effects caused by the COV ID -19
billioninforgivableloanstosmallbusinessesforjobretentionandcertainotherexpenses,through
aprogrnm referred toasthe Paycheck Protection Progrmn (definedpreviously asç$PPP''). In or
around April2020,over$300 billion in additionalPPP funding wasauthorizedby Congress.
ln order to obtain a PPP loan, a qualifying business m ust subm it a PPP loan
application, which is signed by an authorized representative of the business. The PPP loan
application requires the business (through its authorized representative) to acknowledge the
program rulesand m ake certain affirm ative certifications in orderto be eligible to obtain the PPP
loan.lnthePPP loanapplication,thesmallbusiness(throughitsauthorizedrepresentative)must
state,amongotherthings,its:(a)averagemonthlypayrollexpenses;and(b)numberofemployees.
14
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 17 of 22
These figures are used to calculate the amountofmoney the smallbusinessiseligibleto receive
showing theirpayrollexpenses.
(thelender).lfaPPP loanapplicationisapproved,theparticipatingfinancialinstitutionfundsthe
PPP loan using its ow n m onies,which are 100% guaranteed by Sm allBusiness A dm inistration
54. PPP loan proceedsm ustbeused by the business on certain pennissible expenses-
on the PPP loan to be entirely forgiven ifthe business spendsthe loan proceeds on these expense
locallaw ;
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 18 of 22
statem entto obtain aguaranteed loan from the SBA waspunishableunderthe law .
56. Based on the application subm itted by N O BBE to Financial lnstitution 2, the
57. B ased upon,am ong other evidence,the recordings ofN O BBE m ade by Physician
N O BBE subm itted the PPP application for Dynam ic M edical Services, N O BB E know ingly
underfederal,state,or locallaw .
disbursed approxim ately $26,000 forpayroll,N OBBE also disbursed portions ofthe PPP funds
for the account,after transferring the $1,200 in PPP funds to the M iam iIBIS
account,N O BBE then used the PPP funds to m ake personalpurchases including
b. NOBBE transferred another$2,200 into a second accountin the name ofM iami
IBIS,ending in x9753,overw hich N OBBE also had signatory authority.
for the account, Palm etto Lakes Surgical Center LLC appears to be a shell
Com pany.
TheEconomicIniuryp isasterReliefProzram
61. ln order to obtain an EID L and advance, a qualifying business m ust subm it an
application to the SBA and provide inform ation about its operations, such as the num ber of
62. EIDL applicationsare subm itted directly to the SBA and processed by the agency
with support from a govermnent contractor, Rapid Finance. The amount of the loan,if the
application is approved, is determined based, in parq on the inform ation provided by the
underan EIDL oradvanceare issued directly by the SBA. EIDL fundscan be used forpayroll
locallaw ;
N O BBE w ould not, w ithout the prior written consent of SBA , m ake any
distribution of Borrow er's assets, or give any preferential treatm ent, m ake any
advance,directly orindirectly,to any ow nerorpartner,orto any com pany directly
C. NOBBE would notuse the EIDL fundsforthe sam epurposeasany PPP fundshe
m ay have received;and
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 21 of 22
d. A11 of the information provided in the application was true and accurate,and
NOBBE understood thatmaking afalse statem entto obtain a loan from the SBA
waspunishableunder18U.S.C.j 1014andotherlaws.
64. Based on the application submitted by N OBBE to the SBA,the $150,000 EIDL
SBA,m ake any distribution of this m oney to any owner or partner,or to any
bank recordsfortheaccount,CreativeChiropracticappearstobeashellcompany.
Notably,thisaccountwasusedtocarry outtheCarecreditschemedescribedabove.
b. NOBBE transferred approxim ately $7,999 of the EIDL fundsto pay a personal
creditcard in N OBBE'Snam e thatw asused forpersonalexpensesincluding airfare,
CONCLUSION
To -
/s/Lvnnette Alvarez Karnes
SpecialAgentLynnetteAlvarez-Karnes
FB1
20