Hey Bernie and Kamala, Government Can’t Run Medicare

Legitimately that is. The crimes and fraud within the system are so bad already that the FBI is and has been overwhelmed with cases.

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Heck, just last month, the FBI announced the results of Operation Brace Yourself. 24 people were arrested due to Medicare fraud billing amounting to over $1 billion. Get that? One case, over a billion dollars. A medical equipment company out of the Philippines recruited people, there were kickbacks, money-laundering, yachts, luxury real estate deals all inside of at least 100 equipment companies. This FBI investigation involved 20 field offices, agency partners, the IRS, the IRS, Health and Human Services, the Department of Veteran Affairs and even Secret Service.

But wait, that was just one case.

How about a few more?

District of Columbia Physician Indicted for Alleged Role in $12.7 Million Health Care Fraud Scheme
A physician with a practice in the District of Columbia was charged in an indictment unsealed today for his role in an alleged $12.7 million health care fraud scheme to submit fraudulent claims to Medicare for complicated medical procedures he never provided.

Telemarketer And His Companies Agree To Pay $2.5 Million To Settle Allegations That They Operated Telemedicine Schemes Involving Illegal Kickbacks And Unnecessary Prescriptions
United States Attorney Maria Chapa Lopez and U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee announce that Scott Roix, together with several entities through which he ran his telemarketing business, including HealthRight, LLC; Health Savings Solutions, LLC; Vici Marketing, LLC; and Vici Marketing Group, LLC (hereinafter collectively referred to as “marketing companies”), have agreed to pay $2.5 million to resolve allegations that Roix and these marketing companies violated the False Claims Act by causing the submission of false claims to federal healthcare programs in connection with telemedicine health care fraud schemes.

Patient Recruiter Found Guilty in $1.3 Million Medicare Kickback Scheme
A federal jury in Detroit, Michigan found a patient recruiter guilty today for his role in a scheme involving approximately $1.3 million in fraudulent Medicare claims for home health care that were procured through the payment of kickbacks.

Medical Business Owner Sentenced to More Than 10 Years in Federal Prison for Medicare Fraud
AUGUSTA, GA: The owner of a Thomson, Ga., medical equipment company was sentenced to more than 10 years in federal prison Tuesday, July 30, for a wide-ranging Medicare fraud scheme.

Millcreek Community Hospital Will Pay $2,451,000 to Settle Claims for Medically Unnecessary Inpatient Rehabilitation Services
PITTSBURGH – Millcreek Community Hospital, located in Erie, Pennsylvania, has agreed to pay $2,451,000 to resolve claims that the hospital violated the False Claims Act by billing Medicare and Medicaid for medically unnecessary inpatient rehabilitation services, Scott W. Brady announced today.

Read more here.

This information is coming from the Inspector General’s Office and is but a random sampling of cases in the last 3-4 weeks. Get that? 3-4 weeks.

The Medicare Fraud Strike Force (MFSF) was established in 2007. Imagine what was/is going on that a strike force had to be established….The Strike Force operates out of Baton Rouge, Brooklyn, Chicago, Dallas, Detroit, Houston, Los Angeles, Miami, and Tampa Bay.

So, next time you see Bernie, Kamala or Liz or any of the rest of them, mention this little factoid. Could make for good TV and obviously an item that CNN missed altogether in the televised debates.

32 Arrested Major Drug Bust San Francisco

Attention to AOC, Booker, Castro, Biden, O’Rourke and the rest…remember when President Trump said they dont send us their best? Check it, mostly Hondurans.
Hey Pelosi, hey Feinstein, what say you? Maybe someone can alert Shepard Smith too.

Fentanyl…..

U.S. Attorney David Anderson announces a new federal crime-fighting initiative in San Francisco on Wednesday, Aug. 7, 2019. Seventeen federal law enforcement agencies will team up for a yearlong crackdown on a notorious area of San Francisco where open drug use has been tolerated for years. (AP Photo/Samantha Maldonado) photo

The alleged leaders of the two organizations were Andy Reanos-Moreno and Eduardo Alfonso Viera-Chirinos, according to federal criminal complaints filed on Aug. 1 and July 29 and made public Wednesday.

Nielsen said the two cases were the first time in his law enforcement experience that he had seen the model of the leaders of a drug ring renting housing to the drug sellers.

The residences included apartments and houses in Oakland, Hayward and elsewhere and as many as five dealers, sometimes with partners and children, lived in each unit, according to the complaints.

In part: (AP) — The first step in a sweeping crackdown on crime ranging from drugs to sex trafficking in a notorious San Francisco neighborhood yielded 32 arrests of mostly Honduran nationals tied to two international operations that poured heroin and cocaine into the community, U.S. prosecutors announced Wednesday.

In his first news conference since being appointed by President Donald Trump in January, U.S. Attorney David Anderson said he could no longer stand by as tourists, government workers and residents wade through a daily slog of crime. He said an enforcement initiative by more than 15 federal agencies would not affect “innocent” homeless people or drug users but would tackle high-level drug dealing, fraud, identity theft and firearms.

“My belief is that the Tenderloin, in fairness, deserves the rule of law every bit as much as other fine neighborhoods in San Francisco,” he said. “This is not an immigration initiative. This is not a deportation initiative. This is a public safety initiative.”

Still, San Francisco is a city that strongly opposes federal immigration sweeps, and immigration agents are among those joining the FBI, the Drug Enforcement Administration, U.S. Marshals Service and others in the effort. San Francisco was a sanctuary city before the rest of California largely pledged not to work with federal authorities on deporting people in the country illegally.

Chris Nielsen, special agent in charge of the Drug Enforcement Administration in San Francisco, said an investigation launched in late 2017 uncovered two independent operations stretching from Mexico to Seattle in which mostly Honduran nationals living on the eastern side of the San Francisco Bay Area commuted daily to the Tenderloin to sell drugs.

He said the “commuter drug dealers” acted like “independent contractors,” selling drugs in exchange for housing.

“Each morning, drugs were dropped off with dealers in the East Bay and then commuted into the city to sell to people from all over the area,” he said.

The federal crackdown, however, was criticized by San Francisco’s Coalition on Homelessness, whose officials say the Trump administration is targeting immigrants and the poor. “We are deeply concerned that low level offenders, drug users and individuals who do not have homes and are therefore more likely to come in contact with law enforcement will be disparately impacted,” said Sam Lew, the coalition’s policy director.

Others say the neighborhood desperately needs help. Andrea Fogelbach opened her “Slingshot Cafe” coffee shop two months ago in the neighborhood, where discarded needles litter the streets and people sleep in tents or out in the open.

“It’s pretty bad. They’re just shooting up right in front of you,” she said. “I’m afraid for my dog stepping on needles most of the time. If I had children, I don’t think I could live here.”

The organized nature of drug peddling in the Tenderloin was cited in an April city report, which stated that more than half of nearly 900 people booked into jail or cited for incidents tied to drug sales in 2017-18 were cited or arrested by police in the Tenderloin. It said a high percentage of drug sales involve organized crime and “sellers often give drugs to homeless people who are addicted in exchange” for holding the drugs.

The U.S. attorney’s office said it is devoting 15 prosecutors to the crackdown for at least a year.

North Korea Stole $2 billion for its WMD programs

Primer: North Korea has launched 4 rounds of missiles in less than 2 weeks. Talks between the United States and North Korea have stalled. The missiles tested during the recent launches are short range, however can reach South Korea and can travel as far as an estimated 400 miles. These test missiles allegedly are very advanced such they are being advertised as having the abilities to evade missile defense systems. Additionally, each launch took place from a different ground location.

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UNITED NATIONS (Reuters) – North Korea has generated an estimated $2 billion for its weapons of mass destruction programs using “widespread and increasingly sophisticated” cyber attacks to steal from banks and cryptocurrency exchanges, according to a confidential U.N. report seen by Reuters on Monday.

Pyongyang also “continued to enhance its nuclear and missile programmes although it did not conduct a nuclear test or ICBM (Intercontinental Ballistic Missile) launch,” said the report to the U.N. Security Council North Korea sanctions committee by independent experts monitoring compliance over six months.

The North Korean mission to the United Nations did not respond to a request for comment on the report, which was submitted to the Security Council committee last week.

The experts said North Korea “used cyberspace to launch increasingly sophisticated attacks to steal funds from financial institutions and cryptocurrency exchanges to generate income.” They also used cyberspace to launder the stolen money, the report said.

“Democratic People’s Republic of Korea cyber actors, many operating under the direction of the Reconnaissance General Bureau, raise money for its WMD (weapons of mass destruction) programmes, with total proceeds to date estimated at up to two billion US dollars,” the report said.

North Korea is formally known as the Democratic People’s Republic of Korea (DPRK). The Reconnaissance General Bureau is a top North Korean military intelligence agency.

The U.N. experts said North Korea’s attacks against cryptocurrency exchanges allowed it “to generate income in ways that are harder to trace and subject to less government oversight and regulation than the traditional banking sector.”

The Security Council has unanimously imposed sanctions on North Korea since 2006 in a bid to choke off funding for Pyongyang’s nuclear and ballistic missile programs. The Council has banned exports including coal, iron, lead, textiles and seafood, and capped imports of crude oil and refined petroleum products.

U.S. President Donald Trump has met with North Korea leader Kim Jong Un three times, most recently in June when he became the first sitting U.S. president to set foot in North Korea at the Demilitarized Zone (DMZ) between the two Koreas.

They agreed to resume stalled talks aimed at getting Pyongyang to give up its nuclear weapons program. The talks have yet to resume and in July and early August, North Korea carried out three short-range missiles tests in eight days.

The U.N. report was completed before last week’s missile launches by North Korea, but noted that “missile launches in May and July enhanced its overall ballistic missile capabilities.”

The U.N. experts said that despite the diplomatic efforts, their “investigations show continued violations” of U.N. sanctions.

“For example, the DPRK continued to violate sanctions through ongoing illicit ship-to-ship transfers and procurement of WMD-related items and luxury goods,” the U.N. report said.

Fancy Bear, APT28, IoT, Hacking via Printers

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Primer: U.S Ambassador to Russia, Jon Huntsman just issued his letter of resignation to President Trump. He states that he wants to return home to Utah due to a growing family. Gotta wonder if Amb. Huntsman ever really challenged Moscow on hacking and security intrusions of the United States.

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MIT: A group of hackers linked to Russian spy agencies are using “internet of things” devices like internet-connected phones and printers to break into corporate networks, Microsoft announced on Monday.

Fancy Bear never hibernates: The Russian hackers, who go by names like Strontium, Fancy Bear, and APT28, are linked to the military intelligence agency GRU.

The group has been active since at least 2007. They are credited with a long list of infamous work including breaking into the Democratic National Committee in 2016, the crippling NotPetya attacks against Ukraine in 2017, and targeting political groups in Europe and North America throughout 2018.

Insecurity of Things: The new campaign from GRU compromised popular internet of things devices including a VOIP (voice over internet protocol) phone, a connected office printer, and a video decoder in order to gain access to corporate networks. Microsoft has some of the best visibility into corporate networks on earth because so many organizations are using Windows machines. Microsoft’s Threat Intelligence Center spotted Fancy Bear’s new work starting in April 2019.

The password is password: Although things like smartphones and desktop computers are often top of mind when it comes to security, it’s often the printer, camera, or decoder that leaves a door open for a hacker to exploit.

In multiple cases, Microsoft saw Fancy Bear get access to targeted networks because the IoT devices were deployed with default passwords. In another case, the latest security update was not applied. Using those devices as a starting point, the hackers established a beachhead and looked for further access.

“Once the actor had successfully established access to the network, a simple network scan to look for other insecure devices allowed them to discover and move across the network in search of higher-privileged accounts that would grant access to higher-value data,” Microsoft warned in a blog post published on Monday.

The hackers moved from one device to another, establishing persistence and mapping the network as they went, communicating with command and control servers all the while.

Global targets: Microsoft has been closely watching this group over the last year.

Of the 1,400 notifications the company delivered to those targeted or compromised by Fancy Bear, 20% have been to global non-governmental organizations, think tanks, or politically affiliated organizations. The remaining 80% have been to various sectors including government, technology, military, medicine, education, and engineering.

“We have also observed and notified STRONTIUM attacks against Olympic organizing committees, anti-doping agencies, and the hospitality industry,” Microsoft’s blog warned.

Last year, the FBI took disruptive action against a Fancy Bear campaign known as “VPNFilter” which targeted routers and network storage devices with malware with destructive capabilities of “bricking” a device by deleting firmware and rendering the device unusable. That campaign especially targeted Ukraine, a favorite target of Fancy Bear.

Waivers? China Pharmaceuticals Killing Americans

Primer:

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In part from Reuters: “My friend President Xi said that he would stop the sale of fentanyl to the United States – this never happened and many Americans continue to die,” Trump said in a tweet.

“We’re losing thousands of people to fentanyl,” he later told reporters.

The Chinese embassy did not immediately respond to a request for comment.

Fentanyl is an opioid painkiller 50 times more potent than heroin, and has a central role in the devastating U.S. opioid crisis. In the United States, fentanyl and all of its analogues are controlled substances subject to strict regulation.

More than 28,000 synthetic opioid-related overdose deaths, mostly from fentanyl related substances, were recorded in 2017, according to the U.S. Centers for Disease Control and Prevention.

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Added from Bloomberg:

China has become the world’s largest supplier of active pharmaceutical ingredients, or API, providing key components to drugmakers worldwide. But a yearlong recall of tainted heart drugs taken by millions of Americans is prompting U.S. national security officials to ask whether China’s growing role in the pharmaceutical supply chain could pose a threat to the health of military personnel.

“The national security risks of increased Chinese dominance of the global API market cannot be overstated,” Christopher Priest, the acting deputy assistant director for health care operations and Tricare for the Defense Health Agency, told a U.S.-China advisory panel last week in Washington.

The Defense Health Agency manages much of the health care of military members, including prescription drugs.

Concerns about the safety and efficacy of Chinese-made drugs are rising at a time of heightened trade tensions between Washington and Beijing. Last week, Trump unveiled plans for new tariffs on Chinese goods; China plans to halt imports of U.S. crops in response. The yuan sank on Monday against the dollar.

The National Security Council is looking into Chinese drug manufacturing and trying to identify the most at-risk medications, Priest told the U.S.-China Economic and Security Review Commission in Washington, without elaborating. The National Security Council declined to comment.

The Defense Health Agency is supposed to use drugs that comply with the Trade Agreements Act, a 1979 law that requires many federal purchases to be made in the U.S. or another compliant country. China isn’t on the approved list, but the agency has waivers for almost 150 drugs they otherwise wouldn’t be able to procure, Priest said. The TAA covers only finished products, not their components.

Many drugs taken by military members and civilians have active ingredients made in China. While drugmakers typically don’t disclose where every molecule in a pill comes from, the recall of contaminated blood-pressure drugs has shown that many of their active components originated in Chinese factories.

Rocket Fuel

Larry Wortzel, a member of the U.S.-China commission and a military retiree, said four of his blood-pressure medications were recalled in three months. Wortzel’s pills, versions of a drug called valsartan, were manufactured in India but had active ingredients from China.

“They were contaminated with rocket fuel,” Wortzel said. “I imagine active people have the same problem. This affects the readiness of our troops.”

The recalled valsartan contained a probable carcinogen known as NDMA, a manufacturing byproduct once used to make rocket fuel and also found in grilled and cured meats.

Priest called the recalls “a never-ending saga” and a “wake-up call.”

The recalls began in July 2018 with valsartan made by China’s Zhejiang Huahai Pharmaceutical Co. The U.S. Food and Drug Administration has largely blamed the company’s manufacturing process for creating the NDMA, which went undetected for as long as four years. Drugmakers in other countries who used similar processes have also had to recall blood-pressure pills.

Some valsartan purchased by the Defense Logistics Agency and later recalled was TAA-compliant, said Patrick Mackin, a spokesman for the DLA. The agency manages the supply chain for the U.S. military, including ensuring pharmaceuticals make their way to military treatment facilities. With valsartan in shortage, according to the FDA, the agency sought a TAA waiver for valsartan on July 15, Mackin said.

A Bloomberg investigation this year detailed doubts among U.S. health officials about the data generic-drug companies, including Zhejiang Huahai and others involved in the valsartan recalls, use to prove their products are safe and effective.

“We wouldn’t have our aircraft carriers and nuclear submarines built in China, and for very important medications, we really should look at what it takes to purchase based on value not just price,” Rosemary Gibson, the author of the book “China Rx,” told the commission. “We want cheap, we can buy cheap. But what’s missing from the whole equation is quality.”

Shortage Fears

Quality isn’t the only concern. Shortages could also arise from attempts by the Chinese to cut off supply, particularly amid the U.S.-China trade standoff.

“If China shut the door on exports, our hospitals would cease to function, so this has tremendous urgency,” Gibson said.

Priest said pharmaceutical companies should be compelled, using the buying power of the entire federal government, to maintain the infrastructure to make drugs without relying on countries like China.

The House Energy and Commerce Committee is investigating the FDA’s ability to police foreign manufacturing. The committee’s leaders asked the agency for more information on the valsartan recall in June, including about a dispute between senior officials and an agency inspector who raised red flags at Zhejiang Huahai more than a year before the NDMA was detected. The panel also asked the Government Accountability Office to look at the FDA’s oversight of foreign drug manufacturing.

“Shame on us for not paying attention to something so critical and assuming, which has been the orthodoxy for a long time, that the industry would regulate itself,” Benjamin Shobert, senior associate for international health at The National Bureau of Asian Research, told the commission.