Case: 6:13-cr-00040-ART-HAI Doc #: 276 Filed: 05/28/15 Page: 1 of 7 - Page ID#: 1171

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF KENTUCKY
SOUTHERN DIVISION
LONDON

FILED

MAY 2 8 2015
AT COVINGTON
ROBERT R. CARR
CLERK U.S. iJISTRICT COURT

CRIMINAL ACTION NO. 6:13-CR-40-SSS-ART

PLAINTIFF

UNITED STATES OF AMERICA

V.

Eastern Distl'ict of Kentucky

BINDING PLEA AGREEMENT

JOEL A. SHUMRAK

DEFENDANT

*

*

*

*

*

1. Pursuant to Rule 11 (c) of the Federal Rules of Criminal Procedure, the
Defendant, Joel A. Shumrak, will enter a guilty plea to Counts One and Three of the
Indictment. Count One charges conspiracy to distribute a quantity of pills containing
oxycodone, a Schedule II controlled substance, in violation of21 U.S.C. § 846. Count
Three charges conspiracy to commit money laundering in violation of 18 U.S.C. § 1956(h).
The Defendant will also plead to the criminal forfeiture allegation. Pursuant to Rule
11(c)(1)(C), the United States and the Defendant agree to a specific sentence. Pursuant to
Rule 11(c)(4), if the Court accepts this plea agreement, the agreed-upon disposition will be
included in the judgment. Pursuant to Rule 11 (c)(1 )(A), the United States will move to
dismiss the remaining counts and any underlying indictments at the time of sentencing.
2. The essential elements of Count One are:
(a) That two or more persons conspired or agreed to distribute a quantity of pills
containing oxycodone, a Schedule II controlled substance; and
1

 Case: 6:13-cr-00040-ART-HAI Doc #: 276 Filed: 05/28/15 Page: 2 of 7 - Page ID#: 1172

(b) That the Defendant knowingly and voluntarily joined in this conspiracy.
The essential elements of Count Three are:
(a) That two or more persons conspired or agreed to try to accomplish a common
and unlawful plan to violate 18 U.S.C. Section 1956; and
(b) That the Defendant knew about the plan's unlawful purpose and willfully joined
in it.
Specifically, the United States alleges that there was a conspiracy or agreement to conduct
and/or attempt to conduct financial transactions affecting interstate and/or foreign
commerce, which involved the proceeds of a specified unlawful activity (that is those
criminal acts set forth in Count One of the Indictment).
In order to prove the substantive violation the United States must prove that:
(a) First, that someone involved in the conspiracy conducted and/or attempted to
conduct a financial transaction;
(B) Second, that the financial transaction involved property that represented the
proceeds of the unlawful distribution of controlled substances;
(C) Third, that the individual knew that the property involved in the financial
transaction represented the proceeds from some form of unlawful activity; and
(D) Fourth, that the individual knew that the transaction was designed in whole or in
part to conceal and/or disguise the nature, location, source, ownership, and/or
control of the proceeds of said specified unlawful activity
The criminal forfeiture allegation requires proof that ( 1) the listed property was
involved or used in, or comingled with property that was involved or used in, the
alleged offense(s); and/or (2) the property was otherwise derived from the alleged
offense(s).
3. As to Counts One and Three, the United States could prove the following facts,
among others, that establish the essential elements of the offense beyond a reasonable
doubt, and the Defendant admits these facts:
2

 Case: 6:13-cr-00040-ART-HAI Doc #: 276 Filed: 05/28/15 Page: 3 of 7 - Page ID#: 1173

(a) Beginning in or about June of2008, and continuing through in or about May of
2014, the Defendant, Joel A. Shumrak, conspired with others to (1) distribute
oxycodone pills, and (2) to launder money associated with these unlawful activities.
(b) At all times relevant to the instant offense, the Defendant owned and operated
two (2) pain clinics- Johnson S. Johnston, M.D., d/b/a Georgia Health Associates
(GHA) in Tucker, GA, and UCPM, Inc., d/b/a Pain Center ofBroward (PCB) in Ft.
Lauderdale, FL.
(c) The Defendant employed several licensed medical practitioners at these clinics,
including, but not limited to: Dr. MichaelS. Johnston (GHA); Dr. George Pierce
Jones, III (PCB); and Dr. Enrique Augustin Gonzalez-Pujol (PCB). Each of these
physicians had a valid DEA number which allowed them to dispense and prescribe
controlled substances.
(c) Despite the facade of operating as legitimate health care facilities, the true
purpose of both GHA and PCB was to distribute oxycodone, alprazolam, and other
types of prescription drugs outside the usual course of practice and not for a
legitimate medical purpose. In this regard, GHA and PCB were knowingly
prescribing large amounts of controlled substances to drug dealers and end drug
users for profit. Along these same lines, both GHA and PCB catered to out-of-state
"patients."
(d) The Defendant participated in, either directly or remotely, the day-to-day
operations of GHA and PCB. The Defendant knew that a significant number of
patients visiting both clinics were from Kentucky. The Defendant also knew that the
overwhelming majority of these patients did not have a medical condition that
warranted the types and volume of controlled substances that they were being
prescribed.
(e) Specifically, the Defendant states that physicians and other staff members of
both GHA and PCB were prescribing thousands of oxycodone 30 mg pills per
month to out-of-state persons - many of whom were from the Commonwealth of
Kentucky- with little, if any, physical examination or other type of subjective
testing measures generally accepted by practitioners in the health care field for
determining maladies. For the majority of the conspiracy, both GHA and PCB
operated as cash-only businesses. Later, the Defendant requested that PCB patients
pay for their visits using only pre-paid debit cards.
(f) The Defendant further states that he and his employees, to include both

physicians and staff, were aware that many of these out-of-state patients were
3

 Case: 6:13-cr-00040-ART-HAI Doc #: 276 Filed: 05/28/15 Page: 4 of 7 - Page ID#: 1174

sponsored by a single individual, typically a large-scale oxycodone/alprazolam
distributor, who would send groups of persons to GHA and/or PCB several times
per month (hereinafter referred to as a "sponsor"). It was reasonably foreseeable to
the Defendant and his co-conspirators that these sponsors were covering the costs
associated with these visits- to include the travel costs (gas, food, hotel stays, etc.).
In return, the sponsor would receive a portion of the pills prescribed by at GHA
and/or PCB, which he or she would sell to mid-level drug distributors and/or end
drug users in southeastern Kentucky.
(g) In light of these facts, the Defendant states that it was reasonably foreseeable
that the oxycodone and alprazolam pills that were being prescribed to hundreds of
Kentucky residents on a weekly basis were being illegally distributed and abused.
The Defendant further admits that it was reasonably foreseeable that a portion of
these pills were being distributed by and to persons located in the Eastern Judicial
District of Kentucky.
(h) The Defendant states that various Kentucky-based sponsors, MichaelS.
Johnston, George Pierce Jones, III, Enrique Augustin Gonzalez-Pujol, Patricia Ann
Solomon, Catherine Nicole Russell, and Carroll Llyod Elliott, as well as others,
were also part of this conspiracy.
(i) Furthermore, the Defendant states he also conspired with others to conduct
various financial transactions- which affected interstate and/or foreign commerceinvolving proceeds of these unlawful activities, knowing that these transactions
were designed, in whole or in part, to conceal and disguise the nature, location,
source, ownership, and/or control of these proceeds. The Defendant knew that the
aforementioned proceeds were derived from these unlawful activities.

G) In this regard, the Defendant states that he took the proceeds of the
aforementioned unlawful drug distribution and placed them in various accounts,
annuities, insurance policies, and other similar financial instruments at numerous
financial institutions by and through his financial advisors. This was done in an
attempt to legitimize these proceeds as lawful profits of legitimate health care
providers- that is GHA and PCB.
4. The maximum statutory punishment for Count One is not more than 20
years imprisonment, a $1,000,000.00 fine, and at least 3 years supervised release. The
maximum statutory punishment for Count Three is not more than 20 years imprisonment, a

4

 Case: 6:13-cr-00040-ART-HAI Doc #: 276 Filed: 05/28/15 Page: 5 of 7 - Page ID#: 1175

$500,000 fine or a fine of twice the amount of loss, and 3 years of supervised release. A
mandatory special assessment of $200.00 applies, and the Defendant will pay this
assessment to the U.S. District Court Clerk as directed by the Court.
5. Pursuant to Rule 11(c)(l)(C) of the Federal Rules of Criminal Procedure, The
United States and the Defendant agree to the following specific sentence, which binds the
Court upon acceptance of this plea agreement:
The Defendant's sentence of imprisonment shall be 168 months.
6. With the exception of claims of ineffective assistance of counsel, the Defendant
waives the statutory right to collaterally attack and appeal his guilty plea, conviction, and
sentence - including any order of restitution.
7. The Defendant will forfeit to the United States any and all interest in the property
set forth in the criminal forfeiture allegation and the foregoing plea agreement, and will
execute any documents necessary for this forfeiture, with the following exceptions. The
United States agrees that it will not seek forfeiture of proceeds from the following
accounts: G87-5145190 FBO, a Roth IRA account in the name of Joel Shumrak for the
amount of$94,172.85; G51-1468808, an IRA account in the name of Amy Shumrak for the
amount of$137,445.68; G87-5145182 FBO, an IRA account in the name of Amy Shumrak
for the amount of$48,239.68; and G87-5145174 FBO, a Roth IRA account also in the
name of Amy Shumrak for the amount of$7,655.83. The United States further agrees that
it will not seek forfeiture of real property identified as 2164 NW 62nd Drive, Boca Raton,
Florida, parcel# 0642-47-02-30-000-0100, more particularly described as follows: Lot 10,
5

 Case: 6:13-cr-00040-ART-HAI Doc #: 276 Filed: 05/28/15 Page: 6 of 7 - Page ID#: 1176

of Bay Pointe of University Park P.U.D, according to the Plat thereof as recorded in the
Plat Book 69, at Page 112 and 113, of the Public records of Palm Beach County, Florida.
This being the same property conveyed to Joel A. Shumrak and Amy L. Shumrak by
Warranty Deed dated April28, 2000, recorded in ORB 11774, Page 870, in the records of
the Clerk of Palm Beach County, Florida.
8. After pleading guilty, the Defendant will make a full and complete financial
disclosure to the United States and will assist the United States in the gathering of all
financial information. The Defendant will complete and sign a financial disclosure
statement or affidavit, will sign financial releases prepared by the United States, and will
submit to a deposition in aid of collection at times and places that the United States directs.
The Defendant agrees that any unpaid penalty will be submitted to the United States
Treasury for offset.
9. If the Defendant violates any part of this Agreement, the United States may
void this Agreement and seek an Indictment for any violations of federal laws, and the
Defendant waives any right to challenge the initiation of additional federal charges.
10. This document and the sealed supplement contain the complete and only Plea
Agreement between the United States Attorney for the Eastern District of Kentucky and
the Defendant. The United States has not made any other promises to the Defendant.
11. This Agreement does not bind the United States Attorney's Offices in other
districts, or any other federal, state, or local prosecuting authorities.
12. The Defendant and the Defendant's attorney acknowledge that the Defendant
6

 ..

Case: 6:13-cr-00040-ART-HAI Doc #: 276 Filed: 05/28/15 Page: 7 of 7 - Page ID#: 1177

understands this Agreement, that the Defendant's attorney has fully explained this
Agreement to the Defendant, and that the Defendant's entry into this Agreement is
voluntary.

KERRY B. HARVEY
UNITED STATES ATTORNEY

By:

b--

~~~-----'- ~)

W. Samuel Dotson
Assist t United States Attorne

Date:

·y/I~ /1 S'
Defendant

Date:

Y/tv;,~
Bernie M. Cassidy
Attorney for Defendant

APPROVED, this~\--~ day of~

, 2015.

~~

UNITED STATES DISTRICT JUDGE

7