Case Document 3 Filed 05/15/18 Page THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI . EASTERN DIVISION UNITED STATES OF AMERICA v. CRIMINAL NO. I 57673 (iv/56? NTP HOPE EVANGULANE THOMLEY, 18 U.S.C. 1349 HOWARD RANDALL THOMLEY, 18 U.S.C. 1347 GLENN DOYLE BEACH, JR., and 21 U.S.C. 846 GREGORY GRAFTON PARKER 21 U.S.C. 841 18 U.S.C. 371 42 U.S.C. 132021?713 18 U.S.C. 1001 18 U.S.C. 1956(h) 18 U.S.C. 1956(a)(l)(B)(i) The Grand Jury Charges: At all times relevant to this Indictment: GENERAL ALLEGTIONS Introduction and Background 1. As detailed herein, approximately between 2012 and 2015, HOPE EVANGULANE THOMLEY HOWARD RANDALL THOMLEY GLENN DOYLE BEACH, JR. and GREGORY GRAFTON PARKER (collectively, ?defendants?) conspired to and engaged in a scheme to defraud health care insurance companies of more than $200 million by fraudulently formulating, marketing, prescribing, and billing for compounded medications produced and dispensed by pharmacies located in the Southern District of Mississippi. Additionally, during the same timeframe, the defendants also conspired to and engaged in a scheme to pay and receive health care kickbacks and bribes as well as to launder monetary instruments for the purpose of concealing the fraudulently obtained proceeds. Case Document 3 Filed 05/15/18 Page 2 of 50 Pharmacies and Compounding 2. Advantage Pharmacy, LLC, d/b/a Advantage Medical and Pharmacy (?Advantage Pharmacy?), formed in 2008 and located in Lamar County, Mississippi, was initially an open door, retail pharmacy. In or around 2012, Advantage Pharmacy shifted its business focus to the production of compounded medication. 3. I Advantage Medical In?isi?on, LLC, d/b/a AMI Rx, (?Advantage Medical Infusion?) was formed in 2008 and located in Lamar County, Mississippi. In or around late 2013 and early 2014, Advantage Medical Infusion shifted its business focus to the production of compounded medication. 4. Section 505 of the Food, Drug, and Cosmetic Act required drug manufacturers and producers to receive approval by the United States Food and Drug Administration before introducing new drugs into interstate commerce. 5. Section 502 of the Act exempted compounded medications from receiving FDA approval if the compounded medication was compounded by a licensed pharmacist, or other licensed professional, for an identi?ed individual, based on the unsolicited receipt of a valid prescription, and that was medically necessary for the identified individual. 6. In other words, to be exempt from FDA approval, compounded medications were drugs that were combined, mixed, or altered by licensed pharmacists or other licensed practitioners, pursuant to valid prescriptions issued by licensed medical professionals, including physicians and nurse practitioners (?prescribers?), to meet the speci?c needs of individual patients. 7. Prescribers could prescribe compounded medications to patients 'upon considering patients? diagnoses, medical conditions, health factors, and reactions to other medications. Although ingredients in compounded medications are generally approved by the FDA, the Case Document 3 Filed 05/15/18 Page 3 of 50 compounded form of those medications are not. There are risks associated with prescribing drugs that do not meet federal quality standards, so compounded medications are meant to be prescribed when the needs of a patient cannot be met by an FDA-approved medication. Health Care Bene?t Programs and Claims Adjudication 8. TRICARE, administered by the United States Department of Defense, provided health care bene?ts for United States military personnel and their families. I 9. In addition, various private insurance companies such as Blue Cross Blue Shield and its state-based af?liates provided health care bene?ts for individuals enrolled with their plans. 10. TRICARE and these private insurance companies are each a health care bene?t program within the meaning of Title 18, United States Code, Section 24(b). 11. Individuals who quali?ed for TRICARE bene?ts or the bene?ts of other health care bene?t programs were commonly referred to as ?bene?ciaries.? 12. Medical service providers, including hospitals, clinics, physicians, nurse practitioners, and pharmacies (?service providers?), meeting certain criteria, could enroll with health care bene?t programs, including TRICARE, and provide medical services to health care bene?t program bene?ciaries. The service providers would then submit claims, either electronically or in hard copy, to health care bene?t programs seeking reimbursement for the cost of items and services provided. 13. TRICARE and the other health care bene?t programs provided prescription drug coverage, including prescriptions for compounded medications, to eligible bene?ciaries through its pharmacy program or similar drug plans. 14. pharmacy program and other health care bene?t programs? drug plans were administered by Pharmacy Bene?t Managers whose responsibilities included Case Document 3 Filed 05/15/18 Page 4 of 50 adjudicating and processing payment for prescription drug claims submitted by eligible pharmacies. PBMs also audited participating pharmacies to ensure compliance with its rules and regulations. 15. Speci?cally, PBM was known as Express Scripts. 16. Advantage Pharmacy and Advantage Medical Infusion entered into contractual relationships with PBMs, directly and indirectly, and in so doing, agreed to comply with all applicable laws, rules, and regulations, including all applicable federal and state anti-kickback laws. 17. For prescription drugs, including compounded medications, to be reimbursed, health care bene?t programs required that prescription drugs, including compounded medications, were dispensed pursuant to valid prescriptions and were medically necessary for the treatment of covered illnesses. In other words, health care bene?t programs would not reimburse prescription drugs, including compounded medications that were not medically necessary or dispensed without a valid prescriptions. 18. Most, if not all, PBMs, including Express Scripts, required participating pharmacies to collect and make good faith efforts to collect copayments ?om bene?ciaries at the time of billing, and speci?ed that copayments could not be systematically waived or reduced. Consistent copayment collection was a fraud prevention measure, as copayments gave bene?ciaries ?nancial incentives to reject medications that were not medically necessary or had little to no value to bene?ciaries? treatments. 19. Upon receiving prescriptions, Advantage Pharmacy and Advantage Medical Infusion submitted claims for prescription drugs to health care bene?t programs or PBMs. Health care bene?t programs or PBMs reimbursed pharmacies at speci?ed rates, minus any copayments to be Case Document 3 Filed 05/15/18 Page 5 of 50 paid by bene?ciaries. Speci?cally, between 2012 and 2015, health care bene?t providers permitted compounding pharmacies to submit claims and be reimbursed for each individual ingredient included in a compounded medication. 20. Claims submitted by Advantage Pharmacy and Advantage Medical Infusion to PBMs traveled via interstate wire or interstate mail to be adjudicated. For example, regardless of where service providers provided pharmacy bene?ts, Express Scripts adjudicated claims submitted electronically in Piscataway, New Jersey, and claims submitted in hardcopy in Lexington, Kentucky. Defendants and Related Persons and Entities 21. Total Care Marketing, LLC (?Total Care Marketing?) was formed in 2012 and located in Lamar County, Mississippi. 22. United Business Ventures, LLC was formed in 2011 and located in Lamar County, Mississippi. 23. LLC was formed in 2015 and located in Lamar County, Mississippi. 24. Marketing Company 1 was formed in 2012 and located in Lamar County, Mississippi. 25. Advantage Marketing Professionals, LLC (?Advantage Marketing Professionals?) was formed in 2013 and located in Lamar County, Mississippi. 26. Thomley Christmas Tree Farm, LLC (?Thomley Tree Farm?) was formed in 2013 and located in Lamar County, Mississippi. 27. TLC RX, LLC was formed in 2013 and located in Lamar County, Mississippi. 28. Thomley Properties, LLC (?Thomley Properties?) was formed in 2013 and located in Case Document 3 Filed 05/15/18 Page 6 of 50 Lamar County, Mississippi. 29. Farms, LLC Farms?) was formed in 2014 and located in Lamar County, Mississippi. 30. Bone Forest, LLC (?Bone Forest?) was formed in 2014 and located in Lamar County, Mississippi. 31. Intellectual Property Management Services, LLC was formed in 2013 and located in Indiana. 32. IPMS Holdings, Series B, LLC Series was formed in 2016 and located in Lamar County, Mississippi. 33. IPMS Holdings, Series E, LLC Series was formed in 2016 and located in Lamar County, Mississippi. 34. HOPE EVAN GULANE THOMLEY of Hattiesburg, Mississippi, was a founding member of Total Care Marketing. In addition, HOPE THOMLEY or companies she owned and controlled were members of Advantage Pharmacy, Marketing Company 1, UBV, Bone Forest, IMPS Series B, Thomley Properties, and the Thomley Tree Farm. 35. HOWARD RANDALL THOMLEY of Hattiesburg, Mississippi, and companies that he owned and controlled were members of Advantage Marketing Professionals, UBV, Total Care Marketing, Thomley Properties, and the Thomley Tree Farm, and IPMS Series B. 36. GLENN DOYLE BEACH, JR. of Sumrall, Mississippi, and companies that he owned and controlled were members of Advantage Pharmacy, Total Care Marketing, TLC RX, Farms, Bone Forest, and IPMS Series E. Case Document 3 Filed 05/15/18 Page 7 of 50 37. GREGORY GRAFTON PARKER of Laurel, Mississippi, was a licensed nurse practitioner in the state of Mississippi, and had the ability to prescribe medications to patients. PARKER was a member of Marketing Company 1. 38. Albert Luis Diaz, M.D., of Biloxi, Mississippi, was a physician licensed to practice medicine in Mississippi, and had the ability to prescribe medications to patients. 39. Brantley Paul Nichols, D.M.D. (?Nichols?) of Hattiesburg, Mississippi, was an oral surgeon licensed to practice dentistry in Mississippi, and had the ability to prescribe medications to patients. Nichols was a member of Marketing Company 1. 40. Jason Charles May of Hattiesburg, Mississippi, was a pharmacist licensed to dispense pharmaceuticals in the state of Mississippi. May was the Pharmacist-in-Charge of Advantage Pharmacy. May and companies he owned and controlled were members of Advantage Pharmacy and 41. Gerald ?Jay? Schaar (?Schaar?), of Gul?aort, Mississippi, was a marketer of Advantage Pharmacy?s compounded medications. 42. Co-Conspirator 1, of Hattiesburg, Mississippi, and companies he owned and controlled were members of Advantage Pharmacy, Total Care Marketing, Marketing Company 1, and . Relevant Financial Institutions 43. The First, a National Banking Association, was a ?nancial institution within the meaning of Title 18, United States Code, Section 20, the deposits of which were insured by the Federal Deposit Insurance Corporation. The First was headquartered in Hattiesburg, Mississippi, and maintained branch locations throughout the Southern District of Mississippi, including Lamar County, Mississippi. Between at least March 28, 2011 and January 21, 2016, UBV held accounts Case Document3 Filed 05/15/18 Page,8 of 50 atThe First, including but not limited to account No. 2685. Between at least April 24, 2013 and January 21, 2016, Thomley Tree Farm held accounts at The First, including but not limited to account No. 1316. 44. Wells Fargo Bank was a ?nancial institution within the meaning of Title 18, United States Code, Section 20, the deposits of which were insured by the Federal Deposit Insurance Corporation. Wells Fargo Bank was headquartered in Sioux Falls, South Dakota and maintained branch locations throughout the Southern District of Mississippi, including Lamar County, Mississippi. Between at least December 27, 2013 and January 21, 2016, IPMS held accounts at Wells Fargo Bank, including but not limited to account No. 6960. 45. Regions Bank was a ?nancial institution within the meaning of Title 18, United States Code, Section 20, the deposits of which were insured by the Federal Deposit Insurance Corporation. Regions Bank was headquartered in Birmingham, Alabama and maintained branch locations throughout the southern District of Mississippi, including Lamar County, Mississippi. Between at least May 24, 2013 and January 21, 2016, TLC RX held accounts at Regions Bank, including but not limited to account No. 8585. COUNT The Conspirawd Its Obiect 46. Paragraphs 1 through 45 of this Indictment are re-alleged and incorporated by reference as though ?illy set forth herein. 47. Beginning in or around April of 2012, and continuing through in or around January of 2016, in Lamar County, in the Southern District of Mississippi, and elsewhere, the defendants, HOPE EVAN GULANE THOMLEY, HOWARD RANDALL THOMLEY, GLENN DOYLE BEACH, JR., and GREGORY GRAFTON PARKER, A Case Document 3 Filed 05/15/18 Page 9 of 50 did conspire and agree with others known and unknown to the Grand Jury, to commit certain offenses against the United States, that is: a. to knowingly and with the intent to defraud devise and intend. to devise a scheme and arti?ce to defraud, and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, knowing that the pretenses, representations and promises were false and fraudulent when made, and to'knowingly transmit and cause to be transmitted, by means of wire communication in interstate commerce, writings, signs, signals, pictures, and sounds for the purpose of executing such a scheme and arti?ce, in violation of Title 18, United States Code, Section 1343; and b. to knowingly and willfully execute a scheme and arti?ce to defraud a healthcare bene?t program affecting commerce, as de?ned in Title 18, United States Code, Section 24(b), that is, TRICARE and other health care bene?t programs, and to obtain, by means of material false and fraudulent pretenses, representations, and promises, money owned by and under the custody and control of TRICARE and other health care bene?t programs, in connection with the delivery of and payment for health care bene?ts and services, in violation of Title 18, United States Code, Section 1347. Purpose of the Conspiracy 48. It was a purpose of the conspiracy for the defendants and their co-conspirators to unlaw?illy enrich themselves by, among other things, submitting and causing the submission of false and fraudulent claims to health care bene?t programs; submitting and causing the submission of claims to health carebene?t programs based upon materially false and fraudulent pretenses, representations and promises; and concealing the submission of false and fraudulent claims to health care bene?t programs. Case Document 3 Filed 05/15/18 Page 10 of 50 Manner and Means 49. The manner and means by which the defendants and their co-conspirators sought to accomplish the object and purpose of the conspiracy included, among other things: Formulating and Producing High-Yield Compounded Medication 50. BEACH, May, and their co-conspirators identi?ed, promoted, and mass-produced formulations of compound medications that health care bene?t programs, including TRICARE, would reimburse at particularly high rates (?High-Yield Compounded Medication?), regardless of the individual medical needs of the bene?ciaries or the effectiveness of the High-Yield Compounded Medication. One ingredient included in the High-Yield Compounded Medication was ketamine, a Schedule controlled substance. 51. To determine potential adjudication amount for certain formulations, BEACH and his co?conspirators instructed May and others to run ?test? or ?dummy? claims with health care bene?t programs in order to determine how much health care bene?t programs would reimburse for the formulas. That is, Advantage Pharmacy or Advantage Medical Infusion personnel would submit a fake claim on behalf of a real patient?using that patient?s actual personal identifying infonnation?and then reverse it once the pharmacy learned how much the target health care bene?t program would pay for the speci?c compound formula. 52. In some circumstances, if the prescribed High-Yield Compounded Medication was not reimbursed by a bene?ciary?s health care bene?t program, then BEACH, May, and their co- conspirators vary the ingredients and would provide the patient with a different High-Yield Compounded Medication that was covered, and bill the substitute formula instead. 53. BEACH, May, and their co-conspirators mass-produced certain High-Yield Compounded Medication prior to receiving prescriptions and having individuals? medical needs 10 Case Document 3 Filed 05/15/18 Page 11 of 50 identi?ed. Marketing Hi gig-Yield Compounded Medication 54. Advantage Pharmacy would not dispense and bill for High-Yield Compounded Medication without a prescription signed by an authorized prescriber. In the event of an audit by the health care bene?t programs, these prescriptions would be used to evidence that the dispensed medications, including High-Yield Compounded Medication, were medically necessary. 55. To ensure that prescribers prescribed the speci?c compounds that yielded high reimbursement, the defendants and their co-conspirators created pre-printed, check-the-box prescription forms that set forth the formulas for their High-Yield Compounded Medication. 56. Additionally, Advantage Pharmacy owners, including BEACH, directed marketers to encourage prescribers to include and hand-write more ingredients than necessary in compounded medication for the purpose of increasing reimbursement rates, irrespective of the individuals? medical needs. 57. The defendants and their co-conspirators were also paid kickbacks?a percentage of the revenue for prescriptions they obtained, which were covered by certain health care bene?t programs, including TRICARE. 58. In turn, the defendants devised a number of bribery and kickback schemes to provide remuneration to marketers and prescribers who prescribed High?Yield Compounded Medication, and to bene?ciaries who accepted it. Prescribing High-Yield Compounded Medication 59. Prescribers, including PARKER, Nichols, and Diaz, wrote prescriptions for Hi gh-Yield Compounded Medication, regardless of whether it was medically necessary for the individual patients, often times, in exchange for kickbacks and bribes and without examining the patients. 11 Case Document 3 Filed 05/15/18 Page 12 of 50 60. For example, one High-Yield Compounded Medication was a purported ?dietary supplement? comprised entirely of over-the-counter ingredients, for which Advantage Pharmacy billed health care bene?t programs thousands of dollars per bottle. On or about May 16, 2014, PARKER who was receiving remuneration for prescriptions he wrote sent a text message to HOPE THOMLEY as follows: ?If you want to thank me, get me rolling on dietary supplements. I need to make some cash, and I think I can burn through a lot of that stuf 61. Additionally, RANDY THOMLEY provided certain TRICARE bene?ciaries? personal identifying information to Schaar, who then persuaded Diaz to prescribe High-Yield Compounded Medication to the TRICARE bene?ciaries and their families, even though Diaz never examined the patients. 62. Moreover, at HOPE request, PARKER and Nichols signed blank, pre- printed prescription forms and gave them to HOPE THOMLEY, who ?lled in the pre-printed prescription forms identifying which High-Yield Compounded Medication these bene?ciaries would receive, along with the number of re?lls. Billing for High-Yield Compounded Medication 63. Once in possession of a signed prescription, Advantage Pharmacy would dispense the High-Yield Medication and submit a claim to the bene?ciary?s respective health care bene?t program. Several of Advantage Pharmacy?s billing practices were designed to exploit and defraud health care bene?t programs. 64. For example, Advantage Pharmacy engaged in fraudulent billing with respect to the collection of copayments. As a condition of health care bene?t programs agreeing to reimburse claims submitted by Advantage Pharmacy, BEACH, on behalf of Advantage Pharmacy, directly and indirectly agreed to collect copayments from bene?ciaries without reducing or waiving the 12 Case Document 3 Filed 05/15/18 Page 13 of 50 same. 65. However, BEACH, HOPE THOMLEY, and their co-conspirators knew that actually collecting full copayments from patients would cause many of those patients to refuse the High- Yield Compounded Medication. Thus, BEACH, HOPE THOMLEY, and their co-conspirators devised a way for Advantage Pharmacy to waive and reduce the copayments for the bene?ciaries, including TRICARE bene?ciaries, while making it appear to health care bene?t programs and PBMs that the copayments were being collected. Advantage Medical Infusion 66. In or around 2008, BEACH organized both Advantage Pharmacy and Advantage Medical Infusion as LLCs in the state of Mississippi. 67. Due to poor audit performance and other issues, in or around 2013, Advantage Pharmacy was not permitted to ?ll prescriptions in certain states, and was terminated ??om its contracts with certain PBMs. 68. To circumvent, this exclusion, BEACH, HOPE THOMLEY, May, Co-Conspirator l, and other members of Advantage Pharmacy used Advantage Medical Infusion and other pharmacies to dispense High-Yield Compounded Medication that Advantage Pharmacy was prohibited by law or contract frOm dispensing. 69. However, BEACH, HOPE THOMLEY, May, and Co-Conspirator 1 continued to receive the vast majority of the revenue from Advantage Medical In?lsion and other pharmacies, while concealing their ongoing interest in Advantage Medical In?ision and other pharmacies. For example, even though BEACH managed and retained control over Advantage Medical Infusion bank accounts, he represented to the Mississippi Secretary of State that he was ?no longer a part of? Advantage Medical Infusion, and asked for his name to be removed from the Advantage 13 Case Document 3 Filed 05/15/18 Page 14 of 50 Medical Infusion annual report. 70. The defendants, through Advantage Medical Infusion, engaged in many of the same fraudulent practices as Advantage Pharmacy, as set forth above. Scone of the Scheme 71. Together, Advantage Pharmacy and Advantage Medical Infusion fraudulently billed and received from health care bene?t programs more than $200 million. 72. The proceeds from the above-described ?'aud scheme were funneled through various bank accounts, but ultimately were distributed to, among others, BEACH, HOPE THOMLEY, RANDY THOMLEY, PARKER, Nichols, Schaar, Co-Conspirator 1, TRICARE bene?ciaries recruited by RANDY THOMLEY, and other prescribers, marketers, pharmacy owners and bene?ciaries. All in violation of Title 18, United States Code, Section 1349. 73. Paragraphs 1 through 45 and 48 through 72 of the Indictment are re-alleged and incorporated by reference herein as though fully set forth herein. 74. On or about the dates speci?ed below, in Lamar County, in the Southern District of Mississippi, and elsewhere, for the purpose of executing the above-described scheme to defraud TRICARE and other health care bene?t programs, and obtain money by materially false and fraudulent pretenses and representations, the defendants, HOPE EVAN GULANE THOMLEY, HOWARD RANDALL THOMLEY, GLENN DOYLE BEACH, JR., and GREGORY GRAFTON PARKER, 14 Case Document 3 Filed 05/15/18 Page 15 of 50 aided and abetted by others known and unknown to the Grand Jury, in connection with the delivery of and payment for health care bene?ts, items, and services, did knowingly and willfully execute, and attempt to execute, a scheme and arti?ce to defraud a health care bene?t program affecting commerce, as de?ned in Title 18, United States Code, Section 24(b), that is, TRICARE and other health care bene?t programs, and to obtain, by means of materially false and fraudulent pretenses, representations, and promises, money and property owned by, and under the custody and control of, said health care bene?t program: Count Bene?ciary Claim Approx. Date Approx. Defendants Description Transmitted Amount (Rx. Number) Paid 2 SM 107814 10/24/2013 $10,257.87 HOPE THOMLEY RANDY THOMLEY 3 D.M 107818 10/24/2013 $10,274.87 HOPE THOMLEY RANDY THOMLEY 4 C.B.B. 1 14380 7 1/30/2014 $3,906.68 BEACH HOPE THOMLEY PARKER 5 GB 114385 1/30/2014 $3,906.68 BEACH HOPE THOMLEY PARKER 6 A.J.H. 114586 1/31/2014 $2,510.19 BEACH HOPE THOMLEY RANDY THOMLEY PARKER 7 D.M 114587 3/3/2014 $3,904.68 HOPE THOMLEY RANDY THOMLEY PARKER All in violation of Title 18, United States Code, Sections 1347 and 2. COUNT 8 The Conspiracy and Its Object 75. Paragraphs 1 through 45, and 48 through 72 of the Indictment are re-alleged and 15 Case Document 3 Filed 05/15/18 Page 16 of 50 incorporated by reference herein as though fully set forth herein. 76. Beginning in or around April of 2012, and continuing through in or around January of 2016, in Lamar County, in the Southern District of Mississippi, and elsewhere, the defendants, HOPE EVAN GULANE THOMLEY and HOWARD RANDALL THOMLEY, did knowingly and intentionally conspire, confederate, and agree with other persons known and unknown to the Grand Jury to distribute and dispense, outside the scope of professional practice and not for a legitimate medical purpose, quantities of ketamine, a Schedule controlled substance, in violation of Title 21, United States Code, Section 841(a)(1); all in violation of Title 21, United States Code Section, 846. COUNTS 9-13 77. Paragraphs 1 through 45 and 48 through 72 of the Indictment are re-alleged and incorporated by reference herein as though fully set forth herein. 78. On or about the dates identi?ed in the table below, in Lamar County, in the Southem District of Mississippi, and elsewhere, the defendants, HOPE EVAN GULANE THOMLEY and HOWARD RANDALL THOMLEY, aided and abetted by others known and unknown to the Grand Jury, did knowingly and intentionally distribute and dispense, outside the scope of professional practice and not for a legitimate medical purpose, quantities of a Schedule controlled substance: Count Beneficiary Prescription Controlled Defendant Date&Number Substance 9 C.B.B. 9/21/2013 Ketamine HOPE THOMLEY Rx. 105757 10 D.M. 10/24/2013 Ketamine HOPE THOMLEY Rx. C107816 RANDY THOMLEY Ketamine HOPE THOMLEY 16 Case Document 3 Filed 05/15/18 Page 17 of 50 Rx. C107817 RANDY THOMLEY 12 L.H. 10/21/2014 Ketamine RANDY THOMLEY Rx. 1 393 74 13 .M. 12/23/2014 Ketamine RANDY THOMLEY RX. C147381 All in violation of Title 21, United States Code, Sections 841(a)(1) and 2. COUNT 14 The Conspiracy and Its Objects 79. Paragraphs 1 through 45 and 48 through 72 of the Indictment are re?alleged and incorporated by reference herein as though fully set forth herein. 80. Beginning in or around April of 2012, and continuing through in or around January of 2016, in Lamar County, in the Southern District of Mississippi, and elsewhere, the defendants, HOPE EVAN GULANE THOMLEY, HOWARD RANDALL THOMLEY, and GLENN DOYLE BEACH, JR., did knowingly conspire and agree with others known and unknown to the Grand Jury, to commit certain offenses against the United States, that is, a. to knowingly and will?illy solicit and receive remuneration, speci?cally, kickbacks and bribes, directly and indirectly, overtly and covertly, in return for referring individuals for the ?lrnishing and arranging for the furnishing of any item and service for which payment may be made in whole or in part by a Federal health care program, that is, and for the purchasing, leasing, ordering, and arranging for and recommending the purchasing, leasing, and ordering of any good, item, and service for which payment may be made in whole and in part by a Federal health care program, that is, TRICARE, in violation Title 42, United States Code, Sections and and 17 Case Document 3 Filed 05/15/18 Page 18 of 50 b. to knowingly and willfully offer and pay remuneration, speci?cally, kickbacks and bribes, directly and indirectly, overtly and covertly, in return for referring individuals for the furnishing and arranging for the furnishing of any item and service for which payment may be made in whole or in part by a Federal health care program, that is, and for the purchasing, leasing, ordering, and arranging for and recommending the purchasing, leasing, and ordering of any good, item, and service for which payment may be made in whole and in part by a Federal health care program, that is, TRICARE, in violation of Title 42, United States Code, Sections and Purpose of the Conspiracy 81. It was a purpose of the conspiracy for defendants and their co-conspirators to unlawfully enrich themselves by (1) offering, paying, soliciting, and receiving kickbacks and bribes in exchange for arranging and recommending High-Yield Compounded Medication to be dispensed to TRICARE bene?ciaries by Advantage Pharmacy, and (2) submitting and causing the submission of claims to TRICARE for Hi gh-Yield Compounded Medication procured by kickback payments. Overt Acts 82. In ?irtherance of the conspiracy, and to accomplish its object and purpose, defendants and their co-conspirators committed and caused to be committed, in Lamar County, in the Southern District of Mississippi, and elsewhere, the following overt acts: a. On or about September 7, 2012, HOPE THOMLEY and BEACH signed an agreement whereby Advantage Pharmacy agreed to pay Total Care Marketing remuneration in exchange for referring prescriptions, including for TRICARE bene?ciaries, to be ?lled at Advantage Pharmacy. BEACH signed on behalf of Advantage Pharmacy, and HOPE THOMLEY signed on behalf of Total Care Marketing. 18 Case Document 3 Filed 05/15/18 Page 19 of 50 b. HOPE THOMLEY and Co-Conspirator 1 controlled Total Care Marketing, which paid illegal kickbacks to subcontractors in exchange for referrals of prescriptions for bene?ciaries, including TRICARE bene?ciaries c. RANDY THOMLEY and HOPE THOMLEY recruited and paid illegal bribes and kickbacks to TRICARE bene?ciaries to induce TRICARE bene?ciaries to provide their personal identifying information and receive High-Yield Compounded Medication on behalf of themselves and their families. In addition, BEACH and his co-conspirators paid kickbacks to TRICARE bene?ciaries in the form of covering their copayments in whole or in part. (1. Schaar recruited and paid cash bribes to at least one prescriber to prescribe Hi gh-Yield Compounded Medication to bene?ciaries, including TRICARE bene?ciaries, who did not need the medication, and whom the prescriber had never met. In or around September 2014, Advantage Pharmacy billed federal health care bene?t program?for approximately eight fraudulent prescriptions written for certain TRICARE bene?ciaries totaling approximately $67,311.40. f. On or about September 25, 2014, by way of a check signed by BEACH, Advantage Pharmacy remitted approximately $3,776,424.34 to Total Care Marketing?some of which constituted remuneration in exchange for referring TRICARE bene?ciaries to Advantage Pharmacy. g. On or about September 25, 2014, by way of a check signed by HOPE THOMLEY, Total Care Marketing remitted approximately $957,040 to Advantage Marketing Professionals? some of which constituted remuneration in exchange for referring TRICARE bene?ciaries to Advantage Pharmacy. h. On or about September 25, 2014, Advantage Marketing Professionals, 19 Case Document 3 Filed 05/15/18 Page 20 of 50 which was owned and operated by RANDY THOMLEY, remitted approximately $322,785 to UBV. i. On or about September 30, 2014, HOPE THOMLEY wrote checks drawn on UBV to TRICARE bene?ciaries J.A.H. and D.M. in the amounts of $1,900 and $2,458, respectively, in exchange for J.A.H. and D.M. receiving High-Yield Compounded Medication from Advantage Pharmacy on behalf of themselves and their family members. j. On or about March 24, 2015, RANDY THOMLEY wrote checks drawn on UBV to TRICARE bene?ciaries AH. and D.M. in the approximate amount of $3,200 and $4,475.60, respectively, in exchange for AH. and D.M. receiving High-Yield Compounded Medication from Advantage Pharmacy on behalf of themselves and their family members. All in violation of Title 18, United States Code, Section 371. COUNTS 15 - 20 83. Paragraphs 1 through 45, 48 through 72 and 81 through 82 of the Indictment are re- alleged and incorporated by reference herein as though fully set forth herein. 84. On or about the dates identi?ed in the table below, in Lamar County, in the Southern District of Mississippi, and elsewhere, the defendants, HOPE EVAN GULANE THOMLEY, HOWARD RANDALL THOMLEY, and GLENN DOYLE BEACH, JR., knowingly and willfully offered, paid, solicited and received remuneration, that is kickbacks and bribes, directly and indirectly, overtly and covertly, in cash and in kind, in return for referring TRICARE bene?ciaries to a person for the fumishing and arranging for the furnishing of any item or service for which payment may be made in whole or in part under a Federal health care program 20 Case Document 3 Filed 05/15/18 Page 21 of 50 as de?ned in Title 42, United States Code, Section that is, TRICARE, as set forth below: Count Description Approximate Amount Defendants Date of Payment 15 Check paid by Advantage 9/25/2014 $3,776,424.34 BEACH Pharmacy to Total Care Marketing HOPE in exchange for referring THOMLEY bene?ciaries?including TRICARE bene?ciaries?to Advantage Pharmacy. 16 Check paid by Total Care 9/25/2014 $957,040.20 HOPE Marketing to Advantage Marketing THOMLEY Professionals in exchange for RANDY referring-TRICARE bene?ciaries THOMLEY to Advantage Pharmacy . 17 Check paid by UBV to TRICARE 9/30/2014 $1,900.00 HOPE bene?ciary .A.H. in exchange for THOMLEY receipt of High-Yield Compounded Medication 18 Check paid by UBV to TRICARE 9/30/2014 $2,458.00 HOPE bene?ciary D.M in exchange for THOMLEY receipt of High-Yield Compounded Medication . 19 Check paid by UBV to TRICARE 4/2/2014 $3,200.00 RANDY bene?ciary .A.H. in exchange for THOMLEY receipt of High-Yield Compounded Medication 20 Check paid by UBV to D.M. in 3/30/2015 $4,475.60 RANDY exchange for receipt of THOMLEY High-Yield Compounded Medication Each of the above is a violation of Title 42, United States Code, Section COUNT 21 Conspiracy and its Object 85. Paragraphs 1 through 45, 48 through 72 and 81 through 82 of the Indictment are re- alleged and incorporated by reference herein as though fully set forth herein. 86. Beginning in or around December 2015, and continuing through in or around May 2016, 21 Case Document 3 Filed 05/15/18 Page 22 of 50 in the Southern District of Mississippi, and elsewhere, the defendant, HOWARD RANDALL THOMLEY, did conspire and agree with Schaar, Diaz, and others known and unknown to the Grand Jury, to commit certain offenses against the United States, that is, to knowingly alter, destroy, mutilate, conceal, cover up, falsify or make a false entry in a record, document, or tangible object, speci?cally, patient ?les and TRICARE audit response forms for individuals to whom Diaz had prescribed High?Yield Compounded Medication ?lled and dispensed at Advantage Pharmacy, with the intent to impede, obstruct, or in?uence the investigation or proper administration of any matter within the jurisdiction of a department or agency of the United States, speci?cally, a federal grand jury proceeding in the Southern District of Mississippi and a TRICARE investigation into the practices of Advantage Pharmacy, in violation of Title 18, United States Code, Section 1519. Purpose of the Conspiracy 87. It was a purpose of the conspiracy for RANDY THOMLEY and his co-conspirators to impede, obstruct, or in?uence a federal grand jury investigation and a TRICARE audit into Advantage Pharmacy?s claims to TRICARE for medically unnecessary High-Yield Compounded Medication by creating falsi?ed patient records and making false entries in TRICARE audit forms to make it appear as though Diaz had examined bene?ciaries and determined the medical necessity of High-Yield Compounded Medication before prescribing the same to bene?ciaries. Overt Acts 88. In furtherance of the conspiracy, and to accomplish its object and purpose, RANDY THOMLEY and his co-conspirators committed and caused to be committed, in Lamar County, in the Southern District of Mississippi, and elsewhere, the following overt acts: a. In or around December 2015, TRICARE, via Express Scripts, audited the 22 Case Document 3 Filed 05/15/18 Page 23 of 50 Hi gh-Yield Compounded Medication prescribed by Diaz that Advantage Pharmacy had dispensed, and accordingly, requested that Diaz provide to TRICARE, via Express Scripts, the patient records supporting the signed Preprinted Prescription forms prescribing High-Yield Compounded Medication; b. Thereafter, in or around January 2016, RANDY THOMLEY transported Diaz and Schaar to the residences of the TRICARE bene?ciaries to whom Diaz had previously prescribed High~Yie1d Compounded Medication, for the purpose of Diaz creating ?ctitious patient records. Additionally, RANDY THOMLEY and his co-conspirators further created and backdated, or left undated, records for these bene?ciaries to make it appear as though Diaz had examined the bene?ciaries before he prescribed the High-Yield Compounded Medication that were ?lled and dispensed by Advantage Pharmacy; 0. RANDY THOMLEY assisted in creating these false patient records, knowing that Diaz would submit them to TRICARE in connection with an investigation into his prescriptions; d. In or around March 2016, Diaz produced to TRICARE, via Express Scripts, the falsi?ed patient records that he had created in response to the December 2015 TRICARE audit to make it appear as though he had examined the bene?ciaries before prescribing the High-Yield Compounded Medication that were dispensed by Advantage Pharmacy; e. In or around May 2016, Diaz produced to the United States Department of Defense and the United States Department of Justice pursuant to a federal subpoena the falsi?ed patient records that he had created in response to the December 2015 TRICARE audit to make it appear as though he had examined the bene?ciaries prior to prescribing the High-Yield Compounded Medication that were dispensed by Advantage Pharmacy. 23 Case Document 3 Filed 05/15/18 Page 24 of 50 Allin violation of Title 18, United States Code, Section 371. 89. Paragraphs 1 through 45, 48 through 72, 81 through 82, and 87 through 88 of this Indictment are re-alleged and incorporated by reference as if fully set forth herein. 90. On or about March 26, 2016, in Lamar County and in the Southern Distn'ct of Mississippi, the defendant, GREGORY GRAFTON PARKER, in a matter within the jurisdiction of the executive branch of the Government of the United States, that is, an investigation into health care fraud, did knowingly and willfully make a materially false statement to special agents of and task force of?cers with the United States Department of Treasury, the United States Department of Defense, the United States Department of Justice, and the Federal Bureau of Investigation that were materially false. Speci?cally, PARKER stated that he had never written any prescriptions for compounded medication for any person that he had not seen, when in fact, as he knew then, he had signed blank prescriptions for High-Yleld Compounded Medication and provided the same to HOPE THOMLEY to be ?lled in by HOPE THOMLEY at a later date. All in violation of Title 18, United States Code, Section 1001. COUNT 23 The Conspiracy and Its Objects 91. Paragraphs 1 through 45, 48 through 72, 81 through 82, and 87 through 88 of this Indictment are re-alleged and incorporated by reference as if fully set forth herein. 92. From in or around April 2013, and continuing through in or around January 2016, within the Southern District of Mississippi and elsewhere, the defendants, 24 Case Document 3 Filed 05/15/18 Page 25 of 50 HOPE EVAN GULANE THOMLEY and HOWARD RANDALL THOMLEY, did knowingly and intentionally conspire and agree with each other, and with other persons, known and unknown to the Grand Jury, to commit offenses against the United States, speci?cally: a. to knowingly conduct and attempt to conduct a ?nancial transaction affecting interstate and foreign commerce, speci?cally, issuing and depositing checks and initiating wire transfers, which involved the proceeds of a speci?ed unlawful activity, that is health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, and paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section knowing that the transaction was designed in whole and in part to conceal and disguise, the nature, location, source, ownership, and control of the proceeds of said speci?ed unlawful activity and that while conducting and attempting to conduct such ?nancial transaction knowing that the property involved in the ?nancial transaction represented the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section and b. to knowingly engage and attempt to engage, in monetary transactions by, through or to a ?nancial institution, affecting interstate and foreign commerce, in criminally derived property of a value greater than $10,000, that is issuing and depositing checks and initiating wire transfers, such property having been derived from a speci?ed unlawful activity, that is, health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section and laundering monetary instruments, in violation of Title 18, United States Code, Section 1956, in violation of Title 18, United States Code, Section 1957. 25 Case Document 3 Filed 05/15/18 Page 26 of 50 Purgose of the Conspiracy 93. It was a purpose of the conspiracy to conduct wire transfers and issue and deposit checks representing the proceeds of health care fraud, wire fraud, and paying and receiving health care kickbacks, to hide the proceeds and obscure their nature, location, source, ownership, and control. Additionally, it was a purpose to conduct transactions and purchases greater than $10,000 for the bene?t of the defendants and co-conspirators. Manner and Means 94. The following were among the manner and means used by the defendants and their co- conspirators to accomplish the objects of the conspiracy: 95. The defendants and their co-conspirators conducted ?nancial transactions that directed the proceeds earned from Advantage Medical Pharmacy and Advantage Medical Infusion and derived from health care fraud, wire fraud, and paying and receiving health care kickbacks to an account under their control in the name of UBV. 96. The defendants and their co-conspirators conducted ?nancial transactions between an account under their control in the name of UBV and their personal bank accounts to conceal and disguise, the nature, location, source, ownership, and control of the proceeds derived from health care fraud, wire fraud, and paying and receiving health care kickbacks. 97. The defendants and their co-conspirators conducted ?nancial transactions using an account under their control in the name of UBV to conceal and disguise, the nature, location, source, ownership, and control of the proceeds derived from health care fraud, wire fraud, and paying and receiving health care kickbacks by investing said proceeds, purchasing real and personal property, and paying kickbacks to co-conspirators involved in the scheme. 98. The defendants and their co-conspirators conducted ?nancial transactions between an 26 Case Document 3 Filed 05/15/18 Page 27 of 50 1 account under their control in the name of UBV and the Thomley Tree Farm to conceal and disguise, the nature, location, source, ownership, and control of the proceeds derived from health care fraud, Wire fraud, and paying and receiving health care kickbacks. 99. The defendants and their co?conspirators conducted ?nancial transactions between an account under their control in the name of UBV and Thomley Properties to conceal and disguise, the nature, location, source, ownership, and control of the proceeds derived from health care fraud, wire fraud, and paying and receiving health care kickbacks. 100. The defendants and their co-conspirators conducted ?nancial transactions between an account under their control in the name of UBV, Solas Marketing, LLC, and Bone Forest to conceal and disguise, the nature, location, source, ownership, and control of the proceeds derived from health care fraud, wire fraud, and paying and receiving health care kickbacks. 101. The defendants and their co-conspirators purchased assets and made transfers in amounts greater than $10,000 that were derived from funds previously concealed by the defendants and their co-conspirators. Allin violation of Title 18, United States Code, Section 1956(h). COUNT 24 The Conspiracy and Its Objects 102. Paragraphs 1 through 45, 48 through 72, 81 through 82, 87 through 88, and 93 through 101 of this Indictment are re-alleged and incorporated by reference as if fully set forth herein. 103. From in or around December 2013, and continuing through in or around January 2016, within the Southern District of Mississippi and elsewhere, the defendants, HOPE EVAN GULANE THOMLEY HOWARD RANDALL THOMLEY, and GLENN DOYLE BEACH, JR., 27 Case Document 3 Filed 05/15/18 Page 28 of 50 did knowingly and intentionally conspire and agree with each other, Co-Conspirator 1, and with other persons, known and unknown to the Grand Jury, to commit offenses against the United States, speci?cally: a. to knowingly conduct and attempt to conduct a ?nancial transaction affecting interstate and foreign commerce, speci?cally, issuing and depositing checks and initiating wire transfers, which involved the proceeds of a speci?ed unlawful activity, that is health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, and paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section knowing that the transaction was designed in whole and in part to conceal and disguise, the nature, location, source, ownership, and control of the proceeds of said speci?ed unlawful activity and that while conducting and attempting to conduct such ?nancial transaction knowing that the property involved in the ?nancial transaction represented the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section b. to knowingly conduct and attempt to conduct a ?nancial transaction affecting interstate and foreign commerce, which involved the proceeds of speci?ed unlawful activity, that is, health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, and paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section with the intent to engage in conduct constituting a violation of Title 26, United States Code, Section 7206, speci?cally, ?ling tax returns containing materially false statements in order to falsely claim deductions and underreport taxable income, and that while conducting and attempting to conduct such ?nancial transaction knew that the property involved in the ?nancial transaction represented 28 Case Document 3 Filed 05/15/18 Page 29 of 50 the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section 1956(a)( and c. to knowingly engage and attempt to engage, in monetary transactions by, through or to a ?nancial institution, affecting interstate and foreign commerce, in criminally derived property of a value greater than $10,000, that is issuing and depositing checks and initiating wire transfers, such property having been derived from a speci?ed unlawful activity, that is, health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in ?violation of Title 18, United States Code, Section 1343, paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section and laundering monetary instruments, in violation of Title 18, United States Code, Section 1956, in violation of Title 18, United States Code, Section 1957. Purpose of the Conspiracy 104. It was a purpose of the conspiracy to conduct wire transfers and issue and deposit checks representing the proceeds of health care fraud, wire fraud, and pay and receive health care kickbacks, to conceal said proceeds and obscure their nature, location, source, ownership, and control. 105. It was a purpose of the conspiracy to conduct wire transfers and issue and deposit checks representing the proceeds of health care fraud, wire fraud, and pay and received health care kickbacks, with the purpose of conducting such transactions to falsely support deductions and underreport income on tax returns and receive tax bene?ts. 106. It was a purpose of the conspiracy to conduct transactions and purchases greater than $10,000 for the benefit of the defendants and co-conspirators. 29 Case Document 3 Filed 05/15/18 Page 30 of 50 Manner and Means 107. The following were among the manner and means used by the defendants and their co- conspirators to accomplish the objects of the conspiracy: 108. The defendants and their co-conspirators directed the proceeds eamed from Advantage Medical Pharmacy and Advantage Medical In?ision and derived from health care fraud, wire fraud, and paying and receiving health care kickbacks to accounts in the name of IPMS. 109. The defendants and their co-conspirators commingled their funds in accounts in the name of IPMS with other co-conspirators of the schemes to defraud in order to obscure and conceal their ownership. 110. The defendants and their co?conspirators held accounts labeled ?Series? followed by a letter corresponding to each co-conspirator to further anonymize the control of the ?lnds. 111. The defendants and their co-conspirators directed proceeds earned from Advantage Medical Pharmacy and Advantage Medical Infusion and derived from health care ?'aud, wire fraud, and paying and receiving health care kickbacks to the accounts of IPMS for the purpose of falsely claiming deductions and underreporting income on their federal income taxes. 112. The defendants and their co-conSpirators directed funds through the accounts of IPMS to shell entities used to further launder the ?mds, purchase real property, and bene?t the defendants. 113. The defendants and their co-conspirators purchased assets and made transfers in amounts greater than $10,000 that were derived from proceeds of speci?ed unlawful activity previously concealed by the defendants and their co-conspirators. All in violation of Title 18, United States Code, Section 1956(h). 30 Case Document 3 Filed 05/15/18 Page 31 of 50 99.9% The Conspiracy and Its Object 114. Paragraphs 1 through 45, 48 through 72, 81 through 82, 87 through 88, 93 through 101, and 104 through 113 of this Indictment are re-alleged and incorporated by reference as if fully set forth herein. 1 15. From in or around May 2013, and continuing through in or around January 2016, within the Southern District of Mississippi and elsewhere, the defendant, GLENN DOYLE BEACH, R., did knowingly and intentionally conspire and agree with each other, and with other persons, known and unknown to the Grand Jury, to commit offenses against the United States, speci?cally: a. to knowingly conduct and attempt to conduct a ?nancial transaction affecting interstate and foreign commerce, to wit, issuing and depositing checks and initiating wire transfers, which involved the proceeds of a speci?ed unlawful activity, that is health care fraud, in violation Title 18, United States Code, Section 1347, wire ?aud, in violation of Title 18, United States Code, Section 1343, and paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section knowing that the transaction was designed in whole and in part to conceal and disguise, the nature, location, source, ownership, and control of the proceeds of said speci?ed unlawful activity and that while conducting and attempting to conduct such financial transaction knowing that the property involved in the financial transaction represented the proceeds of 'some form of unlawful activity, in violation of Title 18, United States Code, Section and b. to knowingly engage and attempt to engage, in monetary transactions by, through or to a ?nancial institution, affecting interstate and foreign commerce, in criminally 31 Case Document 3 Filed 05/15/18 Page 32 of 50 derived property of a value greater than $10,000, that is issuing and depositing checks and initiating wire transfers, such property having been derived from a speci?ed unlawful activity, that is, health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section and laundering monetary instruments, in violation of Title 18, United States Code, Section 1956, in violation of Title 18, United States Code, Section 1957. Purpose of the Conspiracy 1 16. It was a purpose of the conspiracy to conduct wire transfers and issue and deposit checks representing the proceeds of health care fraud, wire fraud, and pay and receive health care kickbacks, to conceal and disguise the proceeds and robscure their nature, location, source, ownership, and control. Additionally, it was a purpose of the conspiracy to conduct transactions and purchases greater than $10,000 for the bene?t of the defendants and co-conspirators. Manner and Means 117. The following were among the manner and means used by the defendant and his co- conspirators to accomplish the objects of the conspiracy: 118. The defendant and his co-conspirators directed funds earned ?'om Advantage Medical Infusion and derived from health care fraud, wire fraud, and paying and receiving health care kickbacks to an account under the control of which then dispersed said proceeds to accounts controlled by the defendant and his co-conspirators. 119. The defendant and his co-conspirators directed the proceeds earned from Advantage Medical Pharmacy and Advantage Medical Infusion and derived from health care ?'aud, wire fraud, and paying and receiving health care kickbacks to an account under his control in the name 32 Case Document 3 Filed 05/15/18 Page 33 of 50 of TLC RX. 120. The defendant and his co-conspirators used an account under their control in the name of TLC RX toconceal and disguise, the nature, location, source, ownership, and control of the proceeds derived from health care fraud, wire fraud, and paying and receiving health care kickbacks, in part by investing said proceeds and using them to purchase real and personal property. 121. The defendant and his co-conspirators used Farms and Bone Forest to conceal and disguise, the nature, location, source, ownership, and control of the proceeds derived from health care fraud, wire fraud, and paying and receiving health care kickbacks. 122. The defendant and his co-conspirators purchased assets and made transfers in amounts greater than $10,000 that were derived from proceeds of speci?ed unlawful activity previously concealed by the defendant and his co-conspirators, Allin violation of Title 18, United States Code, Section 1956(h). COUNT 26 - 123. Paragraphs 1 through 45, 48 through 72, 81 through 82, 87 through 88, 93 through 101, 104 through 113, and 116 through 122 of this Indictment are re-alleged and incorporated by reference as if fully set forth herein. 124. On or about January 2, 2014, in the Southern District of Mississippi and elsewhere, the defendant, HOPE EVAN GULANE THOMLEY, did knowingly conduct and attempt to conduct a ?nancial transaction affecting interstate and foreign commerce, specifically, issue check #1319 from an account at the First Bank ending in #2685 in the name of UBV to an account at Wells Fargo Bank ending in #6960 in the name of 33 Case Document 3 Filed 05/15/18 Page 34 of 50 IPMS for $3,000,000.00, which involved the proceeds of a speci?ed unlawful activity, that is, health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, and paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section knowing that the transaction was designed in whole and in part to conceal and disguise, the nature, location, source, ownership, and control of the proceeds of said speci?ed unlawful activity and that while conducting and attempting to conduct such ?nancial transaction knowing that the property involved in the ?nancial transaction represented the proceeds of some form of unlawful activity. All in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 2. COUNT 27 125. Paragraphs 1 through 45, 48 through 72, 81 through 82, 87 through 88, 93 through 101, 104 through 113, and 116 through 122 of this Indictment are re-alleged and incorporated by reference as if ?illy set forth herein. 126. On or about October 7, 2013, in the Southern District of Mississippi, the defendant, HOWARD RANDALL THOMLEY, did knowingly conduct and attempt to conduct a ?nancial transaction affecting interstate and foreign commerce, speci?cally, issue check #1275 from an account at the First Bank ending in #2685 in the name of UBV to an account at The First bank ending in #1316 in the name of Thomley Tree Farm for $50,000.00, which involved the proceeds of a speci?ed unlawful activity, that is, health care fraud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, and paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section knowing that the transaction was designed in whole and in part to conceal and disguise, the nature, location, source, ownership, and 34 Case Document 3 Filed 05/15/18 Page 35 of 50 control of the proceeds of said speci?ed unlawful activity and that while conducting and attempting to conduct such ?nancial transaction knowing that the property involved in the ?nancial transaction represented the proceeds of some form of 'unlaw?ll activity. All in violation of Title 18, United States Code, Sections 1956(a)( and 2. COUNT 28 127. Paragraphs 1 through 45, 48 through 72, 81 through 82, 87 through 88, 93 through 101, 104 through 113, and 116 through 122 of this Indictment are re-alleged and incorporated by reference as if ?illy set forth herein. 128. On or about January 2, 2014, in the Southern District of Mississippi, the defendant, GLENN DOYLE BEACH, JR., did knowingly conduct and attempt to conduct a ?nancial transaction affecting interstate and foreign commerce, speci?cally, issue check #1073 from an account at the Regions Bank ending in #8585 in the name of TLC RX to an account at Wells Fargo Bank ending in #6960 in the name of IPMS for $606,499.81, which involved the proceeds of a speci?ed unlawful activity, that is, health care ?aud, in violation Title 18, United States Code, Section 1347, wire fraud, in violation of Title 18, United States Code, Section 1343, and paying and receiving health care kickbacks, in violation of Title 42, United States Code, Section knowing that the transaction was designed in whole and in part to conceal and disguise, the nature, location, source, ownership, and control of the proceeds of said speci?ed unlawful activity and that while conducting and attempting to conduct such ?nancial transaction knowing that the property involved in the ?nancial transaction represented the proceeds of some form of unlawful activity. Allin violation of Title 18, United States Code, Sections 1956(a)(l)(B)(i) and 2. 35 Case Document 3 Filed 05/15/18 Page 36 of 50 FORFEITURE ALLEGATIONS 129. Upon conviction of any of the offenses alleged in Counts One through Seven and/or Counts Fourteen through Twenty of this Indictment, the defendants shall forfeit to the United States any property, real or personal, that constitutes or is derived, directly or indirectly, from gross proceeds traceable to the commission of the offenses, pursuant to Title 18, United States Code, Section 982(a)(7), and any property, real or personal, which constitutes or is derived ?om proceeds traceable to these offenses, pursuant to Title 18, United?States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c) . The grand jury ?nds probable cause that, based on the evidence provided during presentment, the following property is subject to forfeiture: Criminal Identi?er from Asset Description Forfeiture parallel Civil Case Identi?er United States v. Real Property Located at 19 Crane Park, 3:16- cv-27 A1 A-019 $67,257.24 seized from The First account number 15001365, an account in the name of Total Care Marketing, LLC. A2 A-017 $1,567,980.07 seized from Citizens National Bank account number 101773786, an account in the name of Advantage Pharmacy, LLC. A3 A-056 $504,951.72 seized from Priority One Bank (Priority) account number 282814, an account in the name of Advantage Medical In?ision, LLC, doing business as AMI Rx. A4 A-027 $3,465.86 seized from Magnolia account number 8601395, an account in the name of Advantage Marketing Professionals, LLC. A5 A-054 $3,277.47 seized from Regions account number 7511465051, an account in the name of Glenn Doyle Beach or T.B. A6 $37,507.72 seized ?'om Regions account number 196479361, an account in the name of Glenn Doyle Beach or T.B. A7 A-057 $500.00 seized from Priority account number 283283, an account in the name of Development Industries Inc. 36 Case Document 3 Filed 05/15/18 Page 37 of 50 130. Upon conviction of the any of the offenses alleged in Counts One through Seven, Counts Fourteen through Twenty, and/or Counts Twenty-three through Twenty-eight of this Indictment, the defendants shall forfeit to the United States any property, real or personal, that constitutes or is derived, directly or indirectly, from gross proceeds traceable to the commission of the offenses, pursuant to Title 18, United States Code, Section 982(a)(7), any property, real or personal, which constitutes or is derived from proceeds traceable to these offenses, pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(0), and any. property, real or personal, involved in these offenses, or any property traceable to such property, pursuant to Title 18, United States Code, Section 982(a)(1). The grand jury ?nds probable cause that, based on the evidence provided during presentment, the following property is subject to forfeiture: Criminal Identi?er from Asset Description Forfeiture parallel Civil Case Identi?er . United States v. Real Property Located at 19 Crane Park, 3:16- cv-27 A8 $243,425.11 seized from Regions account number 166088585, an account in the name of TLC RX, LLC. A9 A-029 $2,953,435.80 seized from Priority account number 286328, an account in the name of IPMSI Holdings, LLC Series E. A10 A-030 $342,755.98 seized from Priority account number 283176, an account in the name of Farms, LLC. All A-048 $59,935.47 seized from The First account number 15002538, an account in the name of Bone Forest, LLC. A12 $301,613.10 seized from Brinker 676337448, an account in the name of TLC RX, LLC Retirement Plan. A13 A-096 $247,805.47 seized from Brinker 676337079, an account in the name of TLC RX, LLC Retirement Plan. 37 Case Document 3 Filed 05/15/18 Page 38 of 50 A14 A-OO3 $672,304.62 seized ?om The First account number 15002660, an account in the name IPMSI Holdings, LLC, Series B. A15 A-020 $513,692.49 seized from The First account number 5032685, an account in the name of United Business Ventures LLC. A16 A-021 $570,314.01 seized ?'om The First account number 15001605, an account in the name of Thomley Properties, LLC. A17 A-O35 $1,317,217.30 seized ?om NY Life IA account number N- 29-035297, an account in the name of IPMSI Holdings LLC, Series B. A18 A-036 $12.05 seized from NY Life IA account in the name of IPMSI Holdings, LLC, Series B. A19 A-039 $.16 seized from NY Life IA L36-002525, an account in the name of Hope Thomley Holdings, LLC. A20 A-O40 $.16 seized from NY Life IA L36-002526, an account in the name of Howard Thomley Holdings, LLC. A21 A-044 $29,392.02 seized from The First account number 3107760, an account in the name of Hope Evangeline Thomley. A22 A-047 $5,528.88 seized ?om The First account number 15001316, an account in the name of Thomley Christmas . Tree Farm, LLC. A23 A-048 $59,935.47 seized from The First account number 15002538, an account in the name of Bone Forest, LLC. A24 A-061 $55,256.31 seized from NY Life IP number 63814930. A25 A-062 $83,056.18 seized from NY Life IP number 63814927. A26 A-063 $216,633.64 seized from NY Life IA L36-001513, an account in the name of IPMSI Holdings, LLC, Series B. A25 A-064 $253,495.66 seized from NY Life IA L36-001514, an account in the name of IPMSI Holdings, LLC, Series B. A26 A-065 $347,975.52 seized from NY Life IA L36-001515, an account in the name of IPMSI Holdings, LLC, Series B. A27 A-O66 $548,136.28 seized from NY Life IA L36-001516, an account in the name of Holdings, LLC, Series B. A28 A-067 $129,933.17 seized from NY Life IA L36-001517, an account in the name of IPMSI Holdings, LLC, Series B. A29 A-068 $504,585.94 seized ?om NY Life IA L36-001518, an account in the name of IPMSI Holdings, LLC, Series B. A30 A-079 $907,565.26 seized from NY Life IA L36-002522, an account in the name of HOpe Thomley Holdings, LLC. A31 $905,791.27 seized from NY Life IA L36-002523, an account in the name of Hope Thomley Holdings, LLC. A32 A-O81 $521,925.05 seized ?-om NY Life IA L36-002524, an account in the name of Hope Thomley Holdings, LLC. 38 Case Document 3 Filed 05/15/18 Page 39 of 50 A33 A-082 $701,345.58 seized from NY Life IA an account in the name of Hope Thomley Holdings, LLC. A34 A-083 $701,673.89 seized from NY Life IA L36-OO2527, an account in the name of Howard Thomley Holdings, LLC. A35 A-O84 $907,748.22 seized from NY Life IA L36-002528, an account in the name of Howard Thomley Holdings, LLC. A36 A-085 $905,851.68 seized from NY Life IA L36-002529, an account in the name of Howard Thomley Holdings, LLC. A37 A-086 $522,022.68 seized from NY Life IA L36-002530, an account in the name of Howard Thomley Holdings, LLC. A38 A-097 $547,683.93 seized from Brinker 676209499, an account in the name of UBV, LLC Retirement Plan. A39 A-098 $796,876.48 seized from Brinker 676209431, an account in the name of UBV, LLC Retirement Plan. A40 A-O31 $64,745.86 seized from WFB account number 1763836960, an account in the name of Intellectual Property Management Services (IPMSI), LLC. A41 A-032 $415,717.75 seized from Source account number X6883, an account in the name of Intellectual Property Management Services, LLC. A42 A-05 1 $9,809.40 seized from The First account number 15001795, an account in the name of Solas Marketing, LLC. B1 B-018 2015 Mercedes Benz GSSO, VIN Tag MS 466S6, with all attachments thereon, registered to Hope E. Thomley or Randy Thomley. B2 B-019 2014 Porsche Panamera, VIN WPOAA2A72EL010995, Tag MS 72 1 S5, with all attachments thereon, registered to Hope E. Thomley or Randy Thomley. B3 B-020 2013 Ford F-150 Crew Cab, VIN 1FTFW1R6ODFC54655, Tag MS RAPTR32, with all attachments thereon, registered to United Business Ventures, LLC. B4 B-023 2014 Audi Q7, VIN WAIDGAFEOED016621, Tag MS LMF 363, with all attachments thereon, registered to Glenn Doyle Beach. B5 B-024 2013 Jeep Wrangler, VIN 1C4HJWEG8DL579557, Tag MS 620, with all attachments thereon, registered to Glenn Doyle Beach, Jr. B6 B-025 2012 Dodge Ram 2500, VIN 3C6UD5PLOCG199450 with all attachments thereon, registered to Glenn Doyle Beach doing business as Farms, LLC. C1 C-045 Parcel 164-20-042.000 (Hwy. 44), Parcel (Foster Parcel 165-22-007.000 (JD Hatten Parcel 165-22-023.000 (Foster and Parcel 168-28- 39 Case Document 3 Filed 05/15/18 Page 40 of 50 001.000 (Foster Lamar County, MS, titled to Bone Forest LLC. Legally described as: 20 acres, more or less, being in the West 1Section 22, Township 5 North, Range 16 West, Lamar County, Mississippi; AND ALSO Beginning at a pine knot grader blade and x- tie fence comer found on the SE comer Section 22, Township 5 North, Range 16 West, Lamar County, Mississippi; thence North 00?03?47? West a distance of 1318.96 feet to an iron pin and fence comer; thence North 89?14?48? East a distance of 1322.71 feet to a pine knot; thence South 00?31 ?29? East a distance of 1339.83 feet to a x-tie fence comer; thence North 89?51?11? West a distance of 1333.42 feet back to the Point of Beginning; containing 40.53 acres, more or less, and being Section 22, Township 5 North, Range 16 West, Lamar County, Mississippi; AND ALSO Beginning at a pine knot grader blade and x- tie fence corner found on the SE comer Section 22, Township 5 North, Range 16 West, Lamar County, Mississippi, said point being the Point of Beginning; thence South 00?06?35? West a distance of 1323.44 feet to a pine knot and grader blade; thence South 00?32?30? East a distance of 1313.73 feet to an iron pin; thence South 89?52?45? West a distance of 1300.00 feet to a pine knot and grader blade; thence North 00?32?49? West a distance of 1319.42 feet; thence South 89?36?58? West a distance of 1309.55 feet to an iron pin; thence North 00?12?29? East a distance of 1313.39 feet to an iron pin and t-post; thence South 89?22?10? West a distance of 1304.76 feet to a t-post; thence North 00?03?12? West a distance of 1302.47 feet to a found pine knot; thence North 89?16?27? West a distance of 1962.77 feet to an iron pin; thence North 00?11?04? East a distance of 1330.31 feet to an iron pin; thence North 89?23 ?51? East a distance of 3216.25 feet to a x-tie fence comer; thence South 01?01 ?49? East a distance of 2014.89 feet to an iron pin; thence North 89?28?13? East a distance of 1297.83 feet to an iron pin; thence North 00?32?49? West a distance of 659.80 feet to a nail in the center of Foster Road and the point of curve of a non-tangent curve to the left, of which 4O Case Document 3 Filed 05/15/18 Page 41 of 50 the radius point lies North 86?28?08? East a radial distance of 458.08 feet; thence along the center of said road South along the are having a chord direction of South 15?57?59? East a chord distance of 197.29 feet, through a central angle of 24?52? 5? a distance of 198.84 feet; thence continuing along said road South 28?24?06? East a distance of 989.43 feet to the point of curve of a non-tangent curve to the left, of which the radius point lies North 60?00?04? East a radial distance of 867.12 feet; thence continuing along said road SE along the are having a chord direction of South 41?29?45? East a chord distance of 345.66 feet, through a central angle of 22?59?37?, a distance of 347.99 feet to a railroad spike; thence leaving said road run North 89?57?03? East a distance of 573.99 feet back to the Point of Beginning; containing 287.01 acres, more or less, and located Section 28and the South 1/2 of the NW of Section 21; and the East 1Section 20; all in Township 5 North, Range 16 West, Lamar County, Mississippi; together with all improvements thereon and appurtenances thereunto belonging. C2 C-O47 123 Higgins Rd. Sumrall, Lamar County, MS, titled to Glenn Doyle Beach Jr. and TB. Legally described as: Real property located at 123 Higgins Road, Sumrall, Lamar County, Mississippi, more particularly described as: Parcel No. 162-03-022.001 This is to certify that I have surveyed the part and parcel of property located in the Northwest of the Southwest 1/4, Section 3, T-S-N, Lamar County, Mississippi being more particularly described as follows: Commence at a found pine knot at the Southwest comer of the Northwest of the Southwest 1/4 Section 3, Township 5 North, Range 16 West, Lamar County, Mississippi and run 485.34 feet to a set 1/2? rebar and the point of beginning; from said point of beginning run 245.61 feet to a set 1/2? rebar; thence run 180.04 feet to a set 1/2? rebar; thence run 91.63 feet to a set 1/2 rebar; thence run 883?23? 10? 95.90 feet to a found rebar; thence run on and along a curve that curves to the left and 41 Case Document 3 Filed 05/15/18 Page 42 of 50 has a radius of 214.44 feet, a central angle of 43?50?36? for 164.09 feet, along chord of ?38? for 160.12 feet to a found 1/2? rebar on the Western right of way line of Higgins Road; thence run 1 8? 91.36 feet along said right of way line to a found rebar; thence run on and along a curve that curves to the left and has a radius of 1125.87 feet, a central angle of 16?22?21? for 321.72 feet, a long chord of 836?14?44? for 320.63 feet to a found rebar on the Western right of way line of Higgins Road; thence run 343?26?36? for 108.41 feet along said right of way line to a found 1/2? rebar on the Western right of way line of Higgins Road; thence leaving said right of way line run 756.52 feet, back to the point of beginning, said parcel contains 4.88 acres, more or less; all together with all improvements thereon and appurtenances thereunto belonging. C3 C-014 13 Cross Key Big Bay Lake (Lot 3), 29 Cross Key Big Bay Lake (Lot 7), and 33 Cross Key Big Bay Lake (Lot 8), Lamar County, Mississippi, all three parcels titled to Thomley Properties, LLC. Legally described as: LOTS 3, 7 and 8 OF BIG BAYLAKE COMMUNITY, NEIGHBORHOOD CROSS KEY, A SUBDIVISION OF LAMAR COUNTY, MISSISSIPPI, AS PER THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CHANCERY CLERK OF LAMAR COUNTY, MISSISSIPPI. LESS AND EXCEPT the following, all of which are hereby reserved unto Grantor, its successors and assigns: any and all oil, gas and/or other minerals owned by Grantor lying in, on or under the real property conveyed by this Warranty Deed (the "Lot Conveyed"); and (ii) any and all rights, including without limitation voting rights, owned or held by Grantor to amend, change or tcmlinate the Land Partners Restrictions (as de?ned in the Declaration (as herein de?ned?. ALSO LESS AND EXCEPT the following, all of which are hereby excluded from this conveyance md the warranties hereof: 42 Case Document 3 Filed 05/15/18 Page 43 of 50 The real property and all rights described and/or conveyed it] the Warranty Deed from Grantor to Big Bay Lake Holdings, LLC, a Mississippi limited liability company, which is of record in the of?ce of the Chancery Clerk of Lamar County, Mississippi (the "Of?ce") at Land Deed Book 20-K, at Page 508 and/or in the Corrective Warranty Deed from Grantor to said Big Bay Lake Holdings, LLC which is of record in the Of?ce at Land Deed Book 20-L at Page I 05, provided, however, that this exception is not intended to exclude any easements or other rights provided for under and pursuant to the Lake Agreement (as de?ned in the Declaration (as herein de?ned?, but only to the extent provided for therein and subject to all of the terms thereof, provided further- however, that Grantor makes no representations or warranties with respect to such Lake Agreement. C4 C-015 Lot 3 of Pier Point, Big Bay Lake, Lamar County, MS, further described in Exhibit titled to Thomley Properties, LLC. Legally described as: LOT 3, OF BIG BAY LAKE COMMUNITY, NEIGHBORHOOD PIER POINT, A SUBDIVISION OF LAMAR COUNTY, MISSISSIPPI, AS PER THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CHANCERY CLERK OF LAMAR COUNTY, MISSISSIPPI. C5 C-016 Lot 8 of Fisher Point Big Bay Lake, Lamar County, MS, further described in Exhibit titled to Thomley Properties, LLC. Legally described as: LOT 8, OF BIG BAY LAKE COMMUNITY, NEIGHBORHOOD FISHER POINT, A SUBDIVISION OF LAMAR COUNTY, MISSISSIPPI, AS PER THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CHANCERY CLERK OF LAMAR COUNTY, MISSISSIPPI. C6 C-017 Lot 5 Lure Line Big Bay Lake, Lot 16 Lure Line Big Bay Lake, and Lot 42 Lure Line Big Bay Lake, Lamar County, MS, ?irther described in Exhibit titled to Thomley Properties LLC. Legally described as: LOTS 5, 16 and 42 OF BIG BAY LAKE COMMUNITY, NEIGHBORHOOD LURE LINE, A SUBDIVISION OF 43 Case Document 3 Filed 05/15/18 Page 44 of 50 LAMAR COUNTY, MISSISSIPPI, AS PER THE MAP OR PLAT THEREOF ON FILE. AND OF RECORD IN THE OFFICE OF THE CHANCERY CLERK OF LAMAR COUNTY, MISSISSIPPI. LESS AND EXCEPT the following, all of which are hereby reserved unto Grantor, its successors and assigns: any and all oil, gas and/or other minerals owned by Grantor lying in, on or under the real property conveyed by this Warranty Deed (the "Lot Conveyed"); and (ii) any and all rights, including without limitation voting rights, owned or held by Grantor to amend, change or terminate the Land Partners Restrictions (as de?ned in the Declaration (as herein de?ned?. ALSO LESS AND EXCEPT the following, all of which are hereby excluded from this conveyance and the warranties hereof; The real property and all rights described and/or conveyed in the Warranty Deed from Grantor to Big Bay Lake Holdings, LLC, a Mississippi limited liability company, which is of record in the of?ce of the Chancery Clerk of Lamar County, Mississippi (the "Of?ce") at Land Deed Book ZO-K, at Page 508 and/or in the Corrective Warranty Deed from Grantor to said Big Bay Lake Holdings, LLC which is of record in the Of?ce at Land Deed Book 20-L at Page 105, provided, however, that this exception is not intended to exclude any easements or other rights provided for under and pursuant to the Lake Agreement (as de?ned in the Declaration (as herein but only to the extent provided for therein and subject to all of the terms thereof, provided further, however, that Grantor makes no representations or warranties with respect to such Lake Agreement C7 C-036 23 Deer Valley Dr. Hattiesburg, Lamar County, MS, titled to Howard Randy Thomley and Hope E. Thomley. Legally described as: Real property located at 23 Deer Valley Drive, Hattiesburg, Lamar County, Mississippi, more particularly described as: Parcel No. 44 Case Document 3 Filed 05/15/18 Page 45 of 50 Lot 48 Le Papillon, Phase Lamar County, Mississippi, as per the map or plat thereof on ?le in the of?ce of the Chancery Clerk of Lamar County, Mississippi, in Plat Book 3, page 262, Slide 326, together with all improvements thereon and appurtenances thereunto belonging. Indexing Instructions: Lot 48, Le Papillon, Phase Lamar County, Mississippi. Plat Book 3, page 262, Slide 326. C8 C-037 50 Hegwood Dr., Hattiesburg, Lamar County, MS, titled to Thomley?s Christmas Tree Farm LLC. Legally described as: Real property located at 50 Hegwood Road, Hattiesburg, Lamar County, Mississippi, more particularly described as: Parcel No. 055Q-22-002.000 The 1Section 22, Township 4 North, Range 14 West of Lamar County, Mississippi; together with all improvements thereon and appurtenances thereunto belonging. C9 C-038 197 Canebrake Blvd., Hattiesburg, Lamar County, MS, titled to Thomley Properties, LLC. Legally described as: Real property located at 197 Canebrake Blvd., Hattiesburg, Lamar County, Mississippi, more particularly described as: Parcel No. 101Q-12-006.000 Lot 15, Canebrake, Brake S, a Subdivision of the County of Lamar, State of Mississippi, as per the map or plat thereof on ?le and of record in the of?ce of the Chancery Clerk of Lamar County, Mississippi, at Plat Book 2, Page 28, Slide A-95. C10 C-O39 56 98 Place Blvd., Hattiesburg, Lamar County, MS, titled to Thomley Properties LLC. Legally described as: Real property located at 56 98 Place Blvd., Hattiesburg, Lamar County, Mississippi, more particularly described as: . Parcel No. 45 Case Document 3 Filed 05/15/18 Page 46 of 50 Commence at an iron pipe at the Northeast comer of the Northwest 1A of the Southwest IA of Section 9, Township 4 North, Range 14 West, Lamar County, Mississippi and run South 00 degrees 00 minutes 39 seconds East for 1,142.16 feet to a rebar and the Point of Beginning. From the Point of Beginning continue South 00 degrees 00 minutes 39 seconds East for 68.00 feet to a 1/2? rebar; thence run South 89 degrees 38 minutes 54 seconds West for 203.61 feet to a rebar on the East right of way line of 98 Place Blvd. (Paved Public Road); thence run on and along said right-of-way line North 00 degrees 01 minutes 20 seconds West for 68.00 feet to a 1/2? rebar; thence leaving said right-of-way line run North 89 degrees 38 minutes 54 seconds East for 203.63 feet back to the Point of Beginning. Said parcel of land is part of the Northwest of the Southwest '4 of Section 9, Township 4 North, Range 14 West, Lamar County, Mississippi and contains 0.32 acres more or less; together with all improvements thereon and appurtenances thereunto belonging. C11 C-O40 775 Gulf Shore Dr. #36, Destin, Okaloosa County, FL, titled to Howard, and Hope Thomley. Legally described as: Real property located at 775 Gulf Shore Drive, Bldg. 36, Destin, Okaloosa County, Florida, more particularly described as: Parcel No. 00-2S-22-213S-0000-0360 That certain Condominium parcel known as Building No. 36, Sandpiper Cove, Phase X, a Condominium, according to the Declaration of Condominium thereof, as recorded in Of?cial Records Book 1110, Page 797, amended in Of?cial Records Book 1245, Page 788, Of?cial Records Book 1245, Page 796, Of?cial Records Book 1468, Page 1705 and Of?cial Records Book 1468, Page 1710, of the Public Records of Okaloosa County, Florida, together with an undivided interest in the common elements appurtenant thereto, subject to and in accordance with the covenants, conditions, restrictions, terms and other provisions of said Declaration. C12 C-041 775 Gulf Shore Dr. #9136, Destin, Okaloosa County, FL, titled to Thomley Properties, LLC. Legally described as: 46 Case Document 3 Filed 05/15/18 Page 47 of 50 Real property located at 775 Gulf Shore Drive, Bldg. 6, Unit #9136, Destin, Okaloosa County, Florida, more particularly described as: Parcel No. 00?2 36 That certain condominium parcel composed of BUILDING 6, UNIT NO. 9136, and the undivided share in the common elements appurtenant thereto, in accordance with and subject to the covenants, restrictions, terms and other provisions of the Declaration of Condominium of Sandpiper Cove Phase XXV, with the schedules annexed thereto, as recorded in Of?cial Records Book 2018, Page 1726-1818, inclusive, of the Public Records of Okaloosa County, Florida. C13 C-O42 775 Gulf Shore Dr. #2154, Destin, Okaloosa County, FL, titled to Thomley Properties, LLC. Legally described as: Real property located at 775 Gulf Shore Drive, Bldg. 158, Unit #2154, Destin, Okaloosa County, Florida, more particularly described as: Parcel No. 00-28-22-213K-0158-2154 Family Unit No. 2154, Building 158, Sandpiper Cove Phase II, as per the Declaration of Condominium thereof, recorded in Of?cial Records Book 734, Page 143, together with any amendments thereto, of the Public Records of Okaloosa County, Florida. C14 C-043 775 Gulf Shore Dr. #2085, Destin, Okaloosa County, FL, titled to Thomley Properties, LLC. Legally described as: Real property located at 775 Gulf Shore Drive, Bldg. 35, Unit #2085, Destin, Okaloosa County, Florida, more particularly described as: Parcel No. Family Unit No. 2085, Building 35, Sandpiper Cove, Phase as per the Declaration of Condominium thereof, recorded in Of?cial Records Book 762, Page 169, and amended in Of?cial Records Book 842, Page 35, Of?cial Records Book 1245, Page 788, Of?cial Records Book 1245, page 796 and Of?cial Record Book 1360, Page 283, 47 Case Document 3 Filed 05/15/18 Page 48 of 50 together with any amendments thereto, of the Public Records of Okaloosa County, Florida. C15 C-044 775 Gulf Shore Dr. #9104, Destin, Okaloosa County, FL, titled to Thomley Properties, LLC. Legally described as: Real property located at 775 Gulf Shore Drive, Bldg. 9, Unit #9104, Destin, Okaloosa County, Florida, more particularly described as: Parcel No. 00-28-22-2 14M-0009-9104 That certain Condominium Parcel composed of Unit No. 9104, and the undivided share in the common elements appurtenant thereto in accordance with and subject to the covenants, conditions, restrictions, terms and other provisions osf the Declaration of Condominium of SANDPIPER COVE, PHASE XXV, with the schedules annexed thereto, as recorded in Of?cial Records Book 2018, Page 1726, of the Public Records of Okaloosa County, Florida. C16 C-046 47 Copper Creek, Hattiesburg, Lamar County, MS, titled to BB. Legally described as: Real Property located at 47 Copper Creek, Hattiesburg, Lamar County, Mississippi, more particularly described as: Parcel No. Lot 81 of Clear Creek Subdivision, Phase II, of Lamar County, Mississippi, as per the map or plat thereof on ?le and of record in the Of?ce of the Chancery Clerk of Lamar County, Mississippi, at Plat Book 3, Page 316, Slide 380. 131. The United States will also seek forfeiture money judgments against the defendants in the amount of any property, real or personal, that constitutes or is derived, directly or indirectly, from gross proceeds traceable to the commission of Counts One through Seven and Fourteen through Twenty, pursuant to Title 18, United States Code, Section 982(a)(7). 132. The United States will also seek forfeiture money judgments against the defendants in 48 Case Document 3 Filed 05/15/18 Page 49 of 50 the amount equal to the value of any property, real or personal, which constitutes or is derived from proceeds traceable to Count One, pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(0). 133. The United States will also seek forfeiture money judgments against the defendants in the amount equal tothe value of any property, real or personal, involved in Counts Twenty-three through Twenty-eight, or any property traceable to such property, pursuant to Title 18, United States Code, Section 982(a)(1). 134. Upon conviction of any of the offense alleged in Counts Eight through Thirteen, the defendants shall forfeit to the United States, pursuant to Title 21, United States Code, Section 853(a), any property constituting, or derived from, any proceeds obtained, directly or indirectly, as the result of these offenses; and any property used, or intended to be used, in any manner or part, to commit, or to facilitate-the commission of these offenses. The United States Will seek a forfeiture money judgment against the defendant equal to the value of any property constituting, or derived from, any proceeds obtained, directly or indirectly, as the result of this offense. 135. If any of the property described above as being subject to forfeiture, as a result of any act or omission of the defendant: a. cannot be located upon the exercise of due diligence; b. has been transferred or sold to, or deposited with, a third party; 0. has been placed beyond the jurisdiction of the Court; d. has been substantially diminished in value; or c. has been commingled with other property that cannot be subdivided without dif?culty; 49 Case Document 3 Filed 05/15/18 Page 50 of 50 the defendant shall forfeit to the United States any other property, up to the value of the property described above, pursuant to Title 21, United States Code, Section 85 Criminal Forfeiture, in violation of Title 18, United States Code, Sections 982(a)(1), and 982(a)(7), and Title 21, United States Code, Section 853(a) and 853(p), and Title 28, United States Code, Section 2461(0). MICHAEL sT, JR United State ttorney A UE B1 3/ sligignatu redacted Foreperson of the Grand Jury This indictment was retugd in open court by the foreperson or the deputy foreperson of the Grand Jury on this the of May, 2018. rim UNITED STATES MAGISTRATE JUDGE 50 Case Document 3-1 Filed 05/15/18 Page 1 of 1 CRIMINAL CASE COVER SHEET Ji? - U.S. DISTRICT COURT MAY 1 5 2013 i PLACE OF OFFENSE: ogF" RELATED CASE INFORMATION: CITY: HATTIESBURG SUFERSEDING INDICTMENT SAME DEFENDANT DEFENDANT COUNTY: LAMAR MAGISTRATE JUDGE CASE NUMBER 20/ 40 FROM DISTRICT OF DEFENDANT INFORMATION: YES NO MATTER TO BE SEALED: HOPE EVANGULANE THOMLEY U.S. ATTORNEY INFORMATION: AUSA MARY HELEN WALL BAR 100857 INTERPRETER: NO YES LIST LANGUAGE DIALECT: LOCATION STATUS: ARREST DATE ALREADY IN FEDERAL CUSTODY AS OF ALREADY IN STATE CUSTODY ON PRETRIAL RELEASE U.S.C. CITATIONS TOTAL OF COUNTS: A PETTY MISDEMEANOR 23 FELONY OFFICE USE ONLY) INDEX DESCRIPTION OF OFFENSE CHARGED Set 1 l8:l349.F 18 USC 1349 Attempt and Conspiracy 1 Set 2 182134713 18 USC 134? Healtheare Fraud 2-7 Set 3 21 21 USC 846 Conspiracy to Distribute Controlled 8 Substance Set 4 21 USC 8 Controlled Substance? Sell, Distribute, 9-13 Or Dispense Set 5 18 USC 371 Conspiracy 14 Set 6 42 Payment to Non - License (1 Physician 15-20 Set 7 18 1956111) Monev Lauderinq? Fraud Other 23 24 Set 8 18 USCS l956(a)(l Money Laudering - Racketeerimz 26 Date: 5/51 "7 SIGNATURE OF AUSA: QM Revised ?26/20 1 0 Case Document 3-2 Filed 05/15/18 Page 1 of 1 CRIMINAL CASE COVER SHEET U.S. DISTRICT COURT PLACE OF OFFENSE: o2 3/?cr/3?i/S- SOUTHERN DISTRICT OF MISSISSIPPI MAY 15 201B RELATED CASE INFORMATION: BY CITY: SUPERSEDING INDICTMENT DOCKET ?r SAME DEFENDANT NEW DEFENDANT COUNTY: LAMAR MAGISTRATE JUDGE CASE NUMBER 20/ 40 FROM DISTRICT OF DEFENDANT INFORMATION: JUVENILE: YES NO MATTER TO BE SEALED: YES NO HOWARD RANDALL THOMLEY U.S. ATTORNEY INFORMATION: AUSA MARY HELEN WALL BAR 100857 INTERPRETER: NO YES LIST LANGUAGE DIALECT: LOCATION STATUS: ARREST DATE ALREADY IN FEDERAL CUSTODY AS OF ALREADY IN STATE CUSTODY ON PRETRIAL RELEASE U.S.C. CITATIONS TOTAL 0F 24 PETFY MISDEMEANOR 24 OFFICE USE INDEN KEYICODE DESCRIPTION OF OFFENSE IIARGED COI Sci I 182l349.F l8 USC 1349 Attempt and Conspiracv I Set IS: I 18 USC 13-17 Heallhcarc Fraud 2?7 Set 3 2 USC 846 Conspimcv to Distribute Controlled h? Substance Set 4 2 I 2 841m}; 1 1 ?ubgtancc ?Scl , Dism?butc, 9-13 01' Set 5 l8 37] Conspiracy 14 Set 6 42 l3203-7b Payment to Non- License (1 Physician 15?20 Set 7 l8:37l.F 18 Conspiracy 2] Sci 8 [8 USC 3' 1956111! Mo Laudcrin Fraud Other 23 24 Set 9 l8:l956.F 13 USCS Mane Lauden?n - Rack 27 Date: Jr u. - SIGNATURE OF AUSA: 4/ mm II, My a Revised 1-26-2010 Case Document 3-3 Filed 05/15/18 Page 1 of 1 CRIMINAL CASE COVER SHEET - U.S. DISTRICT COURT MAY 15 2518 1 PLACE OF OFFENSE: LL ARTHUR JOHNSTON 0 RELATED CASE INFORMATION: CITY: HATTIESBURG SUPERSEDING IN DICTM ENT DOCKET 63 [l KCE 131%? 11/1770 SAME DEFENDANT NEW DEFENDANT COUNTY: LAMAR MAGISTRATE JUDGE CASE NUMBER 20/ 40 FROM DISTRICT OF DEFENDANT INFORMATION: YES No MATTER TO BE SEALED: GLENN DOYLE BEACH, JR. U.S. ATTORNEY INFORMATION: AUSA MARY HELEN WALL BAR 100857 INTERPRETER: NO YES LIST LANGUAGE DIALECT: LOCATION STATUS: ARREST DATE ALREADY IN FEDERAL CUSTODY AS OF ALREADY IN STATE CUSTODY ON PRETRIAL RELEASE U.S.C. CITATIONS TOTAL OF COUNTS: PETTY MISDEMEANOR 16 FELONY OFFICE USE ONLY) INDEX DESCRIPTION OF OFFENSE CHARGED Set 1 18 USC 1349 Attempt and Conspiracy I Set 2 182134117 18 USC 1347 Healthcare Fraud Set 3 18 USC 3'71 Conspiracy 14 Set 4 42 13203-211 Payment to Non- Licensed Physician 15-20 Set 5 18 USC 19561111 Money Laudering Fraud Other 24 25 Set 6 18 USCS l956(3)(l Money Laudering - Racketeei?ing 28 Revised 2f26x?2010 Date: 643-13 SIGNATURE OF AUSA: 3430qu Case Document 3-4 Filed 05/15/18 Page 1 of 1 CRIMINAL CASE COVER SHEET L. US. DISTRICT COURT I. A PLACE OF OFFENSE: '3 15 2018 JOI-JNSTON NW RELATED CASE INFORMATION: CITY: HATTIESEURG SUFERSEDING INDICTMENT DOCKET c3 1 57C 81 J7 K's-m 7f? SAME DEFENDANT DEFENDANT COUNTY: LAMAR MAGISTRATE JUDGE CASE NUMBER 20/ 40 FROM DISTRICT OF DEFENDANT INFORMATION: YES NO MATTER TO BE SEALED: GREGORY GRAFTON PARKER U.S. ATTORNEY INFORMATION: AUSA MARY HELEN WALL BAR 100857 INTERPRETER: NO YES LIST LANGUAGE DIALECT: LOCATION STATUS: ARREST DATE ALREADY IN FEDERAL CUSTODY AS OF ALREADY IN STATE CUSTODY ON PRETRIAL RELEASE U.S.C. CITATIONS TOTAL OF COUNTS: PETTY MISDEMEANOR LFELONY OFFICE USE ONLY) INDEX DESCRIPTION OF OFFENSE CHARGED Set I 1811349.F 18 USC 1349 Attempt and Conspiracy Set 2 ?321347.13 18 USC 1347 Healthcarc Fraud Set 3 18110011: 18 USC 1001 Statements or Entries Generallv 22 Date: 91943 SIGNATURE OFAUSA: Revised 2/26/2010