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SAN DIEGO (CNS) - A former executive for an Orange County genetics company pleaded guilty today to a federal conspiracy charge for paying kickbacks to physicians.Donald Joseph Matthews, 50, formerly the vice president of market development for Proove Biosciences, admitted in San Diego federal court to paying doctors at least .5 million to order the company's DNA tests for their patients, according to the U.S. Attorney's Office.In total, the U.S. Attorney's Office said Proove billed around million to the Medicare program for the tests -- which the company alleged could determine a patient's risk of drug addiction -- and received around million in reimbursements.Prosecutors said the company claimed the payments were compensation for participation in a clinical research program, but the money was actually "directly tied to the volume of tests that a doctor ordered and whether a doctor continued to order more tests from Proove over time.''In his plea agreement, Matthews admitted that without the financial compensation, ``most doctors were not interested in ordering Proove's tests for their patients.''Doctors who complained about not being paid were told to order more tests, according to the U.S. Attorney's Office.The company's Irvine headquarters was raided by federal authorities in 2017.``Our nation's healthcare system cannot tolerate kickbacks to physicians while criminals line their pockets with taxpayer-funded healthcare dollars, particularly in light of our nation's current struggles with the COVID- 19 pandemic,'' said Acting Special Agent in Charge Omer Meisel of the FBI's San Diego Division.Matthews is scheduled to be sentenced Oct. 26. He faces a maximum penalty of five years in prison and a 0,000 fine, according to the U.S. Attorney's Office. 1798
SAN DIEGO — The economic fallout from the novel coronavirus is leading to increased opportunities to buy a home or refinance one currently owned. Freddie Mac reported Thursday that the average rate for a 30-year fixed mortgage was 3.29 percent, the lowest in its 50-year history.That's down from 4.41 percent one year earlier. With the new, lower rate, a household with a 0,000 mortgage would save about 0 on their monthly payments. "Anytime there's any sort of any big natural disaster, war threat, that type of thing, the Wall Street money seeks safe havens, and that tends to drive rates down," said Scott Harmes, a senior loan officer at C2 Financial Corp. Harmes said the phones have been ringing off the hook since the rates fell, including for people inquiring to refinance. He said refinances should be evaluated on a case-by-case basis, depending on how much a household owes, how much longer the loan will last, and how long they plan to stay in their home. For those in the market to buy, the lower rates come just as San Diego will enter the spring peak homebuying season. Realtor Michelle Silverman said the higher rates could make the market tighter, but that homes still need to be priced appropriately."A seller can't be greedy," said Silverman, of Coldwell Banker. "If you have a greedy seller, the house is going to stay on the market. If the property is priced right, you're going to get multiple offers, maybe even go above list price, and it will move. It will sell."The rate drop comes after the Federal Reserve lowered its key Federal Funds Rate by 0.5 percent earlier this week in an emergency action. CoreLogic reports that the median home price in the county was 5,000 in January, up 7.9 percent from one-year earlier. 1762
SAN DIEGO (CNS) - A 17-year-old boy was pistol whipped and shot in the leg by a man who also snatched the child's cellphone Saturday morning in the Grantville community of San Diego.The teenager was talking on his cellphone in the 6100 block of Decena Drive when he was approached by the suspect at 4 a.m., who demanded his cellphone, said Officer Tony Martinez of the San Diego Police Department.The victim refused and was pistol whipped and then shot in the leg. The suspect then fled the scene with the child's cellphone, Martinez said. The boy suffered a laceration to the head and a shattered femur. Paramedics rushed him to an area hospital.The suspect was about 6-foot, 4-inches tall with a heavy build. He was last seen wearing a black hoodie and green pants.Anyone with any information regarding the assault and shooting was urged to call Crime Stoppers at 888-580-8477. 887
SAN DIEGO (CNS) - A former paralegal specialist for the San Diego division of the FBI was sentenced Monday to 24 months in prison for embezzling nearly 0,000 in government funds.Lynn M. Morris, 56, who pleaded guilty in March to one count of embezzlement of government property, was also ordered by U.S. District Judge Larry Burns to pay 8,000 in restitution."Lynn Morris capitalized on her position at the FBI to line her own pockets with stolen government funds," said Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division. "This conviction demonstrates the Department of Justice's commitment to investigating and prosecuting government employees who abuse their authority. Individuals who violate the public trust will be held accountable."Between July 2014 and November 2016, Morris embezzled 9,821 that belonged to the United States and converted the funds for her own personal use, according to documents submitted in connection with her plea.The funds were in an account owned by the FBI San Diego Division's Asset Forfeiture Unit, where Morris was a paralegal specialist and the AFU's designated coordinator.The court found that Morris also embezzled ,010 from an additional AFU account and stole ,351 from FBI evidence rooms.Morris admitted that to convert government funds to her own use, she used her knowledge and position within the FBI to withdraw cash from the AFU's account undetected and deposited portions of the stolen proceeds into her personal checking account. 1545
SAN DIEGO (AP) - A military judge has released a Navy SEAL from custody in advance of his murder trial in the death of an Islamic State prisoner. Capt. Aaron Rugh said Thursday that he was freeing Special Operations Chief Edward Gallagher as a remedy for interference by prosecutors. Defense lawyers accuse the prosecutors of misconduct for an effort to track defense lawyers' emails that they say violated attorney-client privilege. RELATED: Attorneys fight to free Navy SEAL in MCAS Miramar brig before trialRugh said Thursday he knew Navy investigators were trying to find the source of leaked court documents, but did not know of or approve any email tracking. Defense lawyers say the move amounted to prosecutorial misconduct and they want charges against Gallagher dismissed or prosecutors removed from the case. A military prosecutor downplayed the tracking effort, saying it did nothing more than record information on where and when emails were opened by recipients. RELATED: Rep. Duncan Hunter rallies support for accused Navy SEAL on Capitol HillDefense lawyer Tim Parlatore withdrew his motion to have the judge removed from the case after learning Rugh was kept in the dark about what prosecutors did. Gallagher will be freed as his lawyers continue to argue that the case be dismissed. He is scheduled to face trial June 10. There were gasps in the courtroom as Rugh made the announcement. Gallagher's wife put her head in her hands and burst into tears. 1476