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Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 1 of 22

UNITED STATES DISTRICT COURT


SO U TH E RN D ISTR ICT O F FLO RID A

N o. 1:20-M 1-03236-BECERRA

U NITED STAT ES O F A M ER ICA

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

Respectfully subm itted,

ARIANA FAJARDO ORSHAN


UNITED STATES ATTORN EY

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

U NITED STATES D ISTRICT C OURT


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Southern DistrictofFlorida

United StatesofAmerica )
V. )
DENNIS NO BBE, ) CaseNo. l:20-M J-03236-BECERRA
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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

Thiscrilninalcom plaintisbased on these facts.


See attached affidavit.

dContinuedontheattachedsheet. în

Lynnette Al
varez-KarnesrSpecialAgent!FBI
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lltc:/tl
til'tg47A?:/tl
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t/éJ

Sworn to before me and signed in my presence.

Date: 7.23.20
Jt 'e'
. .signature

City and state: Jacqueline ecerra?U.S.Maqistrate Judge


>rlnteàr/t
rlplt?anJ
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Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 3 of 22

AFFIDAVIT IN SUPPORT OF CRIM INAL COM PLAINT

1,LynnetteAlvarez-Karnes,beingduly sworn,hereby depose and state asfollows:

1am a SpecialAgentwith theFBI,where 1havebeen em ployed forovernineteen

years. I nm presently assigned to the Hea1th Care Fraud Strike Force in M iam i,Florida. M y

currentdutiesinclude the investigation offinancialcrim esincluding bank fraud,wire fraud,and

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.

2. Throughout the cotlrse of m y career, 1 have conducted an array of crim inal

investigations involving money laundering,bank fraud,public corruption,organized crim e,and

m any otherillegalschemesim pactingfinancialinstitutions.1haveexperienceconducting search,

seizure and arrest warrant operations. Recently,lhave been assigned to work with the U.S.

Departm entofJustice and other1aw enforcementpartnersto investigatepossiblefraud associated

withthestimulusand econom icassistanceprogramscreatedby thefederalgovernm entin response

to the CO V ID -19 pandem ic.

3. This aftidavitis subm itted in supportof a crim inalcom plaint charging DEN N IS

NOBBE (SSNOBBE'')with 18U.S.C.j 1349(Conspiracy CommitHea1th CareFraudand W ire


Fraud),18U.S.C.j 1347(HealthCareFraud);18U.S.C.j 1343(W ireFraud);18U.S.C.j 1014
(False Statementsto aFinanciallnstitution);18U.S.C.j 1956(a)(1)(B)(1)(M oney Laundering);
and 18U.S.C.j 1956(h)(ConspiracytoCommitM oneyLaundering).
4. This aftidavit is based on m y personal know ledge and investigation by others,

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
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documents obtained in the course of the investigation as wellas through other means. This

affidavitdoesnotinclude every fad known to m e aboutthisinvestigation,butratheronly those

factssuftk ientto establish probablecause.

FACTS ESTABLISHING PROBABLE CAUSE

lnvestigation hasrevealed thatN OBBE,a chiropractor,devisedandparticipated in

m ultiple conspiracies and fraud schem es, tbrough which he and others defrauded patients,

governm entprogram s,and health care benefitprogram s.

6. NOBBE'Sfirstschem e involved Carecredit,a creditcard program offered by an

FDIC insured bank,FinancialInstitution 1,to tinance out-of-pockethealth care expenses. In or

around 2010,Financiallnstimtion 1terminated NOBBE from the Carecreditprogrnm because of

thedsrisky''nature ofhisbusiness. BecauseNOBBE could notparticipate in Carecredithim self,

N OBBE paidbribesandkickbackstotw ophysicians,Physieian 1and Physician 2,toem ollin and

open accounts through Carecredit, so that NOBBE could protit off of his patients through

Carecreditdespite histermination from theprogram .

7. Specifically,NOBBE and his staff encouraged the patients at his chiropractic

business,m any ofwhom were low-incom eand did notspeakEnglish,to useCarecredittopay for

thousandsofdollarsforservicesthatwould purportedly be provided in the future,butthatoften

werenotrendered atall.NOBBE notonly failedto inform hispatientsregardingthehigh interest

ratesassociated with Carecreditcharges,butalso,did notdisclosethatNOBBE could notofferor

participate in the Carecreditprogram him self.

8. U pon N O BBE placing a charge on a patient's Carecredit credit card account,

FinancialInstitution 1 w ould deposit the value of the charge,less a transaction fee, into a bank

accountcontrolled by Physician 1 or Physician 2. Physician 1 and Physician 2 would keep a

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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''

paym entsthatPhysician 1m adetoNOBBE.NOBBE and conspiratorslaundered theproceedsof

this schem e through a num berbank accounts.

9. NOBBE'Ssecond schem e involved paying bribesand kickbacksto Physician 1to

submitfraudulentclaim sto M edicareonN OBBE'Sbehalf,usingbilling codesforwhich NOBBE

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

concealedNOBBE'Srolein theclaim sfrom M edicare.

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

PaycheckProtectionProgram ($çPPP'')loanapplicationand in anEconomicInjuryDisasterLoan


Emergency($tEIDL'')loanapplication,bothofwhichNOBBE submittedforthepurportedbenefit
ofhis chiropractic business.Through these applications,N O BBE fraudulently obtained m orethan

$200,000in fundsfrom federalprogrnm sintendedto provide COVlD-19 disasterrelief.


1. The C arecreditand M edicare Fraud Schem es

The CarecreditProzram

11. Financiallnstitution 1 offered to the public Carecredit,a health care credit card

thatcould be used to pay for out-of-pocketm edicalexpenses notcovered by m edicalinsurance,

and provided by a pre-approved netw ork of health care providers w ho w ere enrolled w ith

Carecredit.Health c,areproviderswho applied to participate in theCarecreditnetwork and were

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approved by FinancialInstitution 1could offerCarecreditcardsto theirpatients.Providerswho

enrolled in Carecreditagreed to abideby,am ong others,the following term s,each ofwhich was

m aterialto FinancialInstitution 1:

a. Patients'Carecreditaccountscould only be charged forcosts incurred or services

actually rendered w ithin thirty daysofa charge;

Carecredit providers could only process charges for the sale of goods or care

rtndered by theproviderem olled with the Carecreditprogram ;and

C. Carecreditprovidersoram emberoftheprovider'sstaffwere required to inform

Carecreditcardholders(i.e.,thepatientsreceivingtheservices)thatthe deferred
interestprogram forCarecreditcardscanied an annualpercentage rateof26.99.

The M edicare Procram

TheM edicazeProgram (ksMedicare'')wasafederallyfundedprogram thatprovided


free or below-cost health eare benefits to certain individuals,prim arily the elderly,blind,and

disabled.The benefitsavailableunderM ediearew ere govenw d by federalstatutesand regulations.

TheUnited StatesDepartmentofHea1th and Human Services(é$HHS''),through itsagency,the


Centers forM edicare and Medicaid Services ($1CM S''),oversaw and administered Medicare.
Individuals who received benefhs under M edicare were comm only referred to as M edicare

Clbeneficiaries.''

13. M edicarewasalshealth carebenefitprogram ''asdefinedby Title 18,United States

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

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covered,am ong other things,certain physician and outpatient services,and other health care

benefits,itemsand services.

15. ForFlorida beneticiaries,M edicare PartB's insurance coverage forphysician and

outpatientservicesand related health care benefits,item s,and serviceswasadm inistered by First

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

providerthatreceived aM edicareprovidernum berwasabletotileclaim swith M edicareto obtain

reimbursementforservicesprovidedtobenetk iaries.A M edicareclaim wasrequiredto setforth,

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

ordered orperfonned the services.

TheM edicarePartB program generally would pay asubstantialportion ofthe cost

ofthephysician oroutpatientservicesorrelated health carebenefits,item s,and servicesthatwere

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

providerratherthan to thebenetk iary. Forthisto occur,thebenefkiary would assign theright

of paym entto the health care provider. Once such an assignm enttook place,the health care

providerwould assume theresponsibility forsubm itting claim sto,and receiving paymentsfrom ,

M edicare.

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Under M edicare's rules and regulations,physician and outpatient services and

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.

20. M anualspinalm anipulation wasa health care servicethatm ay havebeen eligible

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

provided by a chiropractororotherqualified provider.M edicare PartB did notcoverany other

servicesortestsprovided orordered by achiropractor.

DennisNobbeand DynamicM edicalServices

N OBBE wasa residentofM iam i-DadeCounty,achiropracticm edicaldoctor,and

the presidentofD ynam ic M edicalServices.

22. D ynam ic M edical Services w as a Florida corporation w ith a principal place of

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

doctor($tM .D.'').Physician 1wmsenrolledasaM edicareproviderandaCarecreditprovider.


24. Physician 2 was a residentof Palm Beach County and a doctor of osteopathic

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

ésexploiting apatientforfinancialgain.''TheFloridaD epartm entofH ealth action againstN OBBE,

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

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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

thecomplaint,butagreed to sanctions,including undergoing ethicstraining.

Operation ofthe Carecreditand M edicareFraud Schemesbased upon statem entsm adebv


Phvsician 1 and Phvsician 2.Bank Records,and M edicare Claim sD ata

26. Physician 1 and Physician 2 are cooperating w ith the governm ent in this

investigation. Physician 1 hasagreed to plead guilty to conspiracy to com mitbank fraud,wire

fraud,andhealth carefraud. Physician 2 hasagreed to plead guilty to conspiracy to comm itbank

fraud andwire fraud.ltispresumed thatPhysician 1andPhysician 2 arecooperatinginthehopes

ofobtaining a future potentialsentence reduction in theirrespective cases.

The investigation revealed that after N OBBE w as disciplined by the Florida

D epartm ent of Hea1th, N O BBE continued to offer patients Pre-paym ent Plans through the

Carecreditprogram by soliciting Physician 1and Physician 2 to open Carecreditaccountsin their

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

relationship to Physician 1 and Physician 2 on the Carecreditapplications.

28. O n oraboutJune 22,2017,atN O BBE'Sdirection,Physician 1 successfully applied

to the Carecreditprogram ,concealing thatthe true ow nerofthe Carecreditaccountw asN O BBE

and thatN OBBE,rather than Physician 1,w ould charge patients through Physician 1's account

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and would renderthe servicespurportedly provided to patients thatNOBBE charged through

Physician 1's account.

29. U sing Physician 1'sCarecredit account,N O BBE induced his patients to apply to

be Carecreditcardholders. N O BBE orm em bersofN OBBE'S staffthen charged the cardholder's

accounts for services that Physician 1 purportedly would provide within the nextthirty days,

consistentw ith Carecredit'sterm s and conditions.ln reality,servicesw ere rendered by N O BBE,

ratherthan Physician 1. ln addition,N O BBE generally did notrenderservicesw ithin thirty days,

and often did notrenderallofthe servicesforwhich the cardholderswerecharged. Unawareof

NOBBE'Sfailureto perform the services,FinancialInstitution 1 deposited amountsequalto the

value NOBBE or NOBBE'S staff charged to the cardholders,less transaction fees,into barlk

accountsheld by Physician 1.Physician 1wired thefundss/hereceivedfrom FinancialInstitution

l,lessa kickback s/he retained forhim /herself,to N OBBE. Financiallnstitution 1 also billed the

cardholdersdirectly forthe nm ountcharged to their cards,plusinterestifinterestaccrued.

30. A dditionally,N OBBE paid kickbacksto Physician 1foruseofPhysician 1'sunique

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

November2019,Physician's 1providernum berwasused to subm itapproximately $1,780,229 in


claim sforNOBBE'Spatients,including claimstoM edicarethatN OBBE could notsubm ithim self

asachiropracticphysician,and/orwhich falselyand fraudulently represented thatPhysician 1had

provided certain servicesto M edicare beneficiaries. M edicarepaid approxim ately $515,251 on


these claim s. A s described below ,and ascontirm ed by Physician 1,in reality,the servicesw ere

notprovided by Physician 1,were notprovided asrepresented,and/orw ere nototherw ise eligible

forM edicare reim bursem ent.

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Between in oraround August2017 and in oraroundM ay 2018,bankrecordsreflect

thatFinancialInstitution 1depositedapproxim ately $1,315,560viainterstatewireinto an account


held by Physician 1 forCarecreditcard charges caused by NOBBE. Pursuantto an agreement

with NOBBE,and atN OBBE'S instruction,between approxim ately Decem ber 2017 and June

2018,Physician 1wired approxim ately $1,091,080ofthefundsreceivedfrom FinancialInstitution


1 and M edicare to N O BBE via interstate w ire. Physician 1 w ired these funds to accounts under

N OBBE'S controlincluding,butnotlim ited to,an account in the nam e ofCreative Chiropractic

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

m anagem ent,m arketing,and m erchandising services.

On oraboutJune 4,2018,follow ing num erous patientcom plaints forservices not

rendered,FinancialInstitution 1 term inated Physician 1 from the Carecreditprogrnm .

34. Following Physician 1'sterm ination from the Carecreditprogram ,NOBBE then

recruited a second physician,Physician 2,to open a Carecreditaccotm t.

Physician 2 provided law enforcementwith textmessagesand emailsthatretlect

thatN O BBE explicitly instructed Physician 2 to concealN O BBE'S relationship to Physician 2,

includingbyusing afalseaddressandan emailaccountthatN OBBE created forPhysician 2.For

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''

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On oraboutJuly 26,2018,Physician 2 successfully applied to the Carecredit

progrmn,concealing the factthatthe tnze ow nerofthe Carecreditaccountw as N OBBE and that

NOBBE,rather than Physician 2,would charge patients and render the services pup ortedly

provided to patientsthatN O BBE charged through Physician 2's account.

37. In direct contravention and violation of Financiallnstitution 1's term s for the

Carecreditprogram ,NOBBE routinely charged patients forservicesthatpurportedly would be

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,

Physician2 providedcopiesofwrittencom plaintstoN OBBE,whodrahed responsesforPhysician

2 to subm itto Carecreditpersom w l,including false invoicesthatm isrepresented thatpatientshad

been treated by 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,

Physician 2 wired approximately $678,448 ofthe fundsreceived from FinancialInstitution 1to


!q()I3i)iïvia interstate Nvire.

Follow ing num erous patient com plaints, Financial Institution term inated

Physician 2 from the C arecreditprogram in oraround Septem ber2019.

Recorded Conversation betw een N OBBE and Phvsician 1

40. Physician 1 inform ed 1aw enforcem entthat,beginning in oraround June 2017,s/he

agreed w ith N OB BE to open a Carecreditaccountin Physician 1'snam e to intentionally disguise

thatN O BBE,ratherthan Physician 1,w ould receive funds obtained from FinancialInstitution 1

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as aresultofCarecreditchargesplaced through Physician 1's account.Theagreem entwasthat

N OBBE would retain 80 percentofthe funds obtained through their schem es and Physician 1

would retin 20 percentofthe funds.

41. In or around October and November 2019,atthe direction of law enforcement

agents,Physician 1 covertly recorded conversations w ith N OBBE,in w hich Physician l relayed

to NOBBE thatPhysician 1 had received a subpoena fordocuments from federalinvestigators

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

ofthe paym ents from Physician 1 to N O BBE.

42. Atone pointin the recorded conversation,Physician 1asked ifNOBBE everput

the 80/20 splitagreementin writing. NOBBE responded,i(Isaid we couldn'tsay thatin writing

because that'sillegalto say that.''

43. Later,when Physician 1referencedthe80/20percentsplit,N OBBE adm onished:

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.''
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44. Therecording also capm red N OBBE stating to Physician 1,ttW hatareyou gonna

do? Nobody knowsexceptyou and 1.That'swhy I'm saying otlrstoriesneed to betogetheron

thisleasethatwehavebecauseyoucannottellthem it'sapercentagething.W ejustgetourstories


together....lwantyoutostayoutofjailand1wanttostayoutofjail.So,again,there'snothing
w e did twrong'as long as it's on the prem ise ofthese lease paym ents forN obbe's m anagem ent,

N obbe's staff.''

Corroborating Inform ation Provided by D ynam ic M edicalServices Patients

45. Investigators spoke to several patients of Dynam ic M edical Services w ho w ere

charged via Carecredit. Patients generally told investigatorsthatthey w ere charged thousandsof

dollarsvia theirCarecreditcardsforservicesthatwere notprovided by the Carecreditprovider

onwhosebehalfchargesweresubmitted(Physician1orPhysician2)and/orthatwerenotprovided
atall.A lthough m any patientsw ere ableto successfully dispute theirchargesthrough Carecredit,

m any experienced financialdistress as a resultofchargesplaced on their Carecreditaccountsby

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

staffinform ed him/herwould be charged $4,000 forapproximately thirty treatm ents;however,

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.

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PatientM .G.S.told investigatorsthats/hevisited DynamicM edicalServicesthree

tim esforpain in his/herback. On the tirstvisit,M .G .S.w asoffered a Carecreditcard,which w as

charged$6,000 forapproximately20treatm ents.Although M .G.S.waschargedthrough Physician


2'sCarecreditaccountforservicesthatpurportedlywouldberendered byPhysician 2,M .G.S told

1aw enforcem entagents thats/he neverreceived treatm entfrom Physician 2. M .G .S.attem pted to

disputetheCarecreditcharge,butwasrequiredto pay abalanceofapproximately $1,947.


48. Investigatorsalso spoketo fourpatientsonbehalfofwhom Physician 1'sM edicare

providernumberwasused to submitclaim sto M edicare.N oneofthosefourpatientsrecognized

Physician 1 orrecalled receiving any treatm entfrom Physician 1.

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

approxim ately tw o m inutes. D ynam ic M edicalServicesstaffinfonned R.R.thatM edicare w ould

coverthese treatm ents. R .R.stopped going to D ynam ic M edialServices because the treatm ents

were ineffective. M edicare claim sdata reflectthatPhysician 1'sM edicareprovidernumberwas

used to submitapproxim ately $1,471 in claim s on behalfofpatientR.R.forservices including

lidocaine injections, physical therapy, application of ultrasound, application of electrical


stimulation'
,and X-rays.M edicare paid approxim ately $727 on theseclaim s.
50. Similarly,PatientI.R.informed investigatorsthats/he wentto Dynam ic M edical

Services for pain after seeing a com m ercial on television. D uring visits at Dynam ic M edical

Services,I.R .received X -Rays,electrical therapy,physicaltherapy,and chiropractic treatm ent.

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

providernum berwasused to subm itapproxim ately $2,927 in claim son behalfofpatientI.R.for


services including occupational therapy; application of ultrasound'
, application of electrical

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,

because they w ere not,in fact,provided by Physician 1. M oreover,according to M edicare rules

and regulations, these services are not eligible for reim bursem ent from M edicare if they are

provided by a chiropractic physician. A s a chiropractic physician,N OBBE w ould nothave been

eligible forreim bursem enton any ofthese claim s.

1I. TheFraudulentDisasterReliefLoan Applications(PPP and EIDL)

The Paycheck Protection Procrnm

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

pandem ic.Onesourceofreliefprovided by the CARES Actwasthe authorization ofup to $349

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.

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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

underthe PPP. ln addition,businesses applying for a PPP loan m ustprovide documentation

showing theirpayrollexpenses.

53. A PPP loan application mustbe processed by a participating financialinstitution

(thelender).lfaPPP loanapplicationisapproved,theparticipatingfinancialinstitutionfundsthe
PPP loan using its ow n m onies,which are 100% guaranteed by Sm allBusiness A dm inistration

(1$SBA'').Datafrom theapplication,includinginformation abouttheborrower,thetotalamount


ofthe loan,and the listed numberofemployees,is transm itted by the lenderto the SBA in the

course ofprocessing the loan.

54. PPP loan proceedsm ustbeused by the business on certain pennissible expenses-

payrollcosts,intereston m ortgages,rent,and utilities. The PPP allow s the interestand principal

on the PPP loan to be entirely forgiven ifthe business spendsthe loan proceeds on these expense

item swithin adesignated period oftim eafterreceivingtheproceedsand usesacertain am ountof

the PPP loan proceeds on payrollexpenses.

D vnam ic M edicalServices'SBA Loan Application to Financiallnstitution 2

55. On or aboutM ay 21,2020,NOBBE signed an application fora PPP loan in the

amountof$53,800 behalfofDynam ic M edicalServices. Through the loan application,NOBBE


certified,am ong otherthings,that:

a. A ll SBA loan proceeds w ould be used only for business-related purposes,which

N OBBE stated would be payroll,lease/m ortgage,orutilities expenses;

b. N OBBE w as not engaged in any activity that w as illegalunder federal,state,or

locallaw ;
Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 18 of 22

Al1oftheinformation provided in the application,and in allsupporting docum ents,

was true and acclzrate,and NOBBE understood thatknowingly making a false

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

$53,800 PPP loan wasapproved by Financiallnstitution 2,which disbursed theloan proceedson

or aboutM ay 22,2020 into an accountending in x0239 atFinanciallnstitution 2 in the nam e of

D ynam ic M edicalServices,overw hich N O BBE had sole signatory authority.

57. B ased upon,am ong other evidence,the recordings ofN O BBE m ade by Physician

1thataredescribed inparagraphs40-42 above,there isprobablecauseto believethat,atthetime

N O BBE subm itted the PPP application for Dynam ic M edical Services, N O BB E know ingly

m isrepresented to Financiallnstitution 2 thathe was notengaged in any activity thatw as illegal

underfederal,state,or locallaw .

Bank R ecords Analvsis

58. Banking records reflectthat,following the receiptofPPP funds,while NOBBE

disbursed approxim ately $26,000 forpayroll,N OBBE also disbursed portions ofthe PPP funds

into otheraccountsunderhiscontrol.Forexam ple:

Approxim ately $1,200 wastransferred to an accountending x3193 in the nnme of


M iam iIBIS.N OBBE had sole signatory authority overthe x3193 account. Based

on m y training and experience,asw ellas a review ofbank recordsforthe account,

M iam iIBIS appearsto be a shellcompany. Based on m y review ofbank records

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

paym entsto N etflix,a carw ash,and Spotify.


Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 19 of 22

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.

N OBBE transferred approximately $3,000 into an accountending in x9559 in the


nam e ofPalm etto Lakes SurgicalCenter LLC ,over w hich N OB BE had signatory

authority.Basedon mytrainingandexperience,aswellasareview ofbalzkrecords

for the account, Palm etto Lakes Surgical Center LLC appears to be a shell

Com pany.

d. NOBBE transferredapproxim ately $1,000 ofthePPP fundstopay apersonalcredit


card in N OBBE'S nam e thatw as used for personalexpenses including airfare,a

vacation resort,N ettlix,and a gym m em bership.

TheEconomicIniuryp isasterReliefProzram

59. TheEconomicInjury DisasterLoan (definedpreviously astIEIDL'')program isan


SBA progrnm thatprovides low -interestfinancing to sm allbusinesses,renters,and hom eow ners

in regionsaffected by declared disasters.

60. OnesourceofreliefprovidedbytheCARES Actwastheauthorization fortheSBA

toprovideEIDLSofup to$2 million to eligiblesm allbusinessesexperiencingsubstantialfinancial


disruption due to the CO V 1D-19 pandem ic. ln addition,the CA RES Act authorized the SBA to

issue advancesofup to $10,000 to sm allbusinesseswithin three daysofapplying foran EIDL.


The am ount of the advance is determ ined by the num ber of em ployees the applicant certifies

having.Theadvancesdo nothaveto berepaid.

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

em ployees,grossrevenues forthe lz-m onth period preceding the disaster,and costofgoodssold


Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 20 of 22

in the lz-m onth period preceding thedisaster.In thecase ofEIDLSforCOV1D-19relief,the 12-

month period wasthatpreceding January 31,2020.Theapplicantm ustalsocertifythatallofthe

infonnation in the application istrueand correctto thebestoftheapplicant'sknowledge.

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

application aboutemployment,revenue,and costofgoods,asdescribed above.Any fundsissued

underan EIDL oradvanceare issued directly by the SBA. EIDL fundscan be used forpayroll

expenses,sick leave,production costs,and businessobligations,such asdebts,rent,and mortgage

payments. Ifthe applicantalso obtainsa loan underthePPP,the EIDL fundscannotbeused for

the sam e purpose asthe PPP funds.

Dynam ic M edicalServices'EIDL Loan Application

On oraboutJune 16,2020,NOBBE signed an application foran EIDL loan in the

am ountof$150,000behalfofDynam icM edicalServices.Through theloan application,N OBBE

certified,am ong otherthings,that:

N O BBE w as not engaged in any activity thatw as illegaltm der federal,state,or

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

orindirectly controlling oraffiliated with orcontrolled by NOBBE;

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

loanwasapproved by the SBA and $149,900 (thevalueoftheloan lessa $100transaction fee)


wasdisbursedon oraboutJune 17,2020 into an accountending in x0239 in thenam eofDynamic

M edicalServices,overwhich NOBBE had solesignatory authority.

Bank recordsreflectthatEIDL funds anived into the Dynamic M edicalServices

account ending in x0239 on or aboutJune 18,2020. Following rectiptofthe ftmds,NOBBE

disbursed fundsinto otheraccountsunderhiscontrol,andto pay personalexpenses.Forexample:

a. In directcontravention ofhispromise notto,withoutthe priorwritten consentof

SBA,m ake any distribution of this m oney to any owner or partner,or to any

company directly or indirectly controlling or affiliated with or controlled by

NOBBE,NOBBE im mediatelytransferredapproxim ately $100,000intoan account


ending in x2701 in the name ofCreative Chiropractic,overwhich NOBBE had

signatory authority. Based on m y training and experience,aswellasa review of

bank recordsfortheaccount,CreativeChiropracticappearstobeashellcompany.

Notably,thisaccountwasusedtocarry outtheCarecreditschemedescribedabove.

Specitically,between approxim ately June2017 and September2019,Physicians1

and 2 wired approximately $979,850 into thisaccountaspal4 ofthatscheme.

b. NOBBE transferred approxim ately $7,999 of the EIDL fundsto pay a personal
creditcard in N OBBE'Snam e thatw asused forpersonalexpensesincluding airfare,

avacation resort,Netflix,and agym mem bership.


Case 1:20-mj-03236-JB Document 1 Entered on FLSD Docket 07/24/2020 Page 22 of 22

CONCLUSION

66. Based onmy trainingand experience,andtheinformationprovidedinthisaffidavit,

lrespectfullysubmitthatthereisprobablecauseto believethatbeginningfrom atleastinoraround

September 2017,and continuing untilthe present,within the Southern Distrid of Florida,and

elsewhere,NOBBE committedviolationsof18U.S.C.j 1349(Conspiracy CommitHealth Care


Fraud and W ireFraud Fraud),18 U.S.C.j 1347 (Hea1th CareFraud);18 U.S.C.j 1343 (W ire
Fraudl; 18 U.S.C. j 1014 (False Statements to a Financial lnstimtion); 18 U.S.C.
j 1956(a)(1)(B)(1)(MoneyLaundering);and 18U.S.C.j1956(h)(ConspiracytoCommitMoney
Latmdering).ldeclareunderpenalty ofperjurythatthestatementsabovearetrueandcorrectto
thebestofm y knowledgeand belief.

FURTH ER YOUR AFFIM TSA YETH NA UGH T

To -
/s/Lvnnette Alvarez Karnes
SpecialAgentLynnetteAlvarez-Karnes
FB1

Sworn to and subscribed beforeme


telephonically this pa day ofJuly,2020.
-

THE HONORABL A QUELW E BECERRA


U nited States M ag' rate Judge

20