Charges have been filed in the Eastern District of New York federal court against five individuals accused in separate pandemic-related fraud schemes, the Department of Justice announced recently.

The five defendants - two certified nurse midwives, one licensed practical nurse and two health care business owners - were charged April 20 with fraudulently distributing 2,600 fake COVID-19 vaccination-record cards and defrauding the Paycheck Protection and the Economic Injury Disaster Loan programs of approximately $1.7 million, according to a DOJ news release issued at the time.  

“The defendants in these cases used the COVID-19 pandemic as an opportunity to engage in fraud, including faking vaccine cards and stealing vital funds designed to keep struggling businesses afloat,” U.S. Attorney Breon Peace said in the release. “My Office remains committed to combating the opportunistic fraud that occurred in connection with the pandemic.”

The conspiracies were outlined in two separate indictments and one "criminal information," the news release reports. In one indictment, Kelly McDermott, owner of midwife clinic Sage-Femme Midwifery PLLC in Albany, New York, and Kathleen Breault, who worked at Sage-Femme, schemed to have the clinic enrolled as an authorized COVID-19 vaccine administration site. The two defendants also conspired to provide proof of vaccination to people who were not vaccinated, minors who were ineligible for vaccinations at that time, and non-U.S. citizens who were not in the U.S. at the purported time of vaccination. Vials of vaccine intended for actual patient use were allegedly destroyed by McDermott and Breault, the release reports.

The criminal information charges that Sherilyn Pellitteri, a licensed practical nurse and employee of Sage-Femme Midwifery, engaged in the same activities as McDermott and Breault, according to the news release.

"Even though Sage-Femme was a small midwife practice, the defendants’ fraud turned it into one of the busiest Johnson & Johnson vaccination sites in New York State, outpacing large, state-run vaccination sites," the DOJ states in the release.

In the second indictment, defendants Kate Spencer and Ziv Biton were charged with conspiring to commit wire and bank frauds, and money laundering. The two submitted numerous fake applications on behalf of purported health care and other businesses to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program, resulting in the distribution of approximately $1.7 million in fraudulent loans, allegedly used for personal expenses and purchases of residential properties, the news release reports. 

“Since the start of the pandemic, we have seen the aid for businesses and individuals stolen through fraud and deceit," Special Agent in Charge Thomas Fattorusso said in the news release. "Fraudsters have lined their pockets and built real estate empires through illicit gains, showing no regard for those who truly need the funds. IRS Criminal Investigation and our investigative partners stay committed to targeting the criminals taking advantage of COVID relief benefits to see that the only pockets they line are those of a prison jumper."

The charges are part of a nationwide COVID-19 enforcement effort led by the DOJ's Criminal Division's Fraud Section. Criminal charges have been filed against a total of 18 individuals for alleged participation in various healthcare fraud schemes, costing approximately $490 million in false claims, the DOJ reports.

“Today’s announcement marks the largest-ever coordinated law enforcement action in the United States targeting health care fraud schemes that exploit the COVID-19 pandemic,” Kenneth Polite Jr., Criminal Division assistant Attorney General, said in the news release. “The Criminal Division’s Health Care Fraud Unit and our partners are committed to rooting out pandemic-related fraud and holding accountable anyone seeking to profit from a public health emergency.”