United States of America v. Gupta et al
Filing
9
OPINION entered by Judge Sue E. Myerscough on 09/14/2011. SEE WRITTEN OPINION as to Stipulated Preliminary Injunction. (DM, ilcd)
E-FILED
Wednesday, 14 September, 2011 06:47:36 PM
Clerk, U.S. District Court, ILCD
IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF ILLINOIS
SPRINGFIELD DIVISION
UNITED STATES OF AMERICA,
)
)
Plaintiff,
)
)
v.
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)
GAUTAM GUPTA, JAANA MONIKA )
VIRTA-GUPTA, and GAUTAM
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GUPTA, M.D., LLC, d/b/a THE
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NUTRITION CLINIC,
)
)
Defendants.
)
11-3329
OPINION
Plaintiff United States of America, by its attorney, James A. Lewis,
United States Attorney, Defendant Jaana Monika Virta-Gupta (“VirtaGupta”), by her attorney R.C. Pottinger, and Defendant The Nutrition
Clinic, by its attorney John Gilbert, agree and stipulate as follows for a
Stipulated Preliminary Injunction:
1.
The parties have reached an agreement regarding a 30-day
extension of the terms set forth in the Temporary Restraining Order (d/e
7), except as modified below.
2.
The parties agree that an injunction pursuant to 18 U.S.C. §
1345 should be issued.
3.
This preliminary injunction issued pursuant to 18 U.S.C. §
1345 should be in effect through and including October 13, 2011.
4.
Except as expressly provided below, the parties agree to a
Stipulated Preliminary Injunction that enjoins and prohibits Defendants
Gautam Gupta (Gupta), The Nutrition Clinic, Virta-Gupta and their
agents, employees, attorneys, and all persons in active concert or
participating with them, including all banking and other financial
institutions at which they do business, business partners, and all other
corporations over which the Defendants Gupta, The Nutrition Clinic, and
Virta-Gupta exercise control or have an ownership interest:
(1)
from alienating, withdrawing, transferring, removing,
dissipating, or otherwise disposing of, in any manner, any moneys or
sums presently deposited, or held on behalf of Defendants Gupta,
The Nutrition Clinic, or Virta-Gupta by any financial institution,
trust fund, or other financial agency, public or private, that are
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proceeds from the $2.3 million in fraudulent claims made by
Defendants Gupta, The Nutrition Clinic, or Virta-Gupta, or any
moneys of an equivalent value to those taken through false,
fictitious, or fraudulent claims;
(2)
from alienating, withdrawing, transferring, removing,
dissipating, or otherwise disposing of, in any manner, assets, real or
personal, whose value is up to $2.3 million;
(3)
from interfering with, transferring or disposing of any
assets up to $2.3 million in value owned by Gupta, The Nutrition
Clinic, Gautam Gupta, LLC, and all other companies, businesses
accounts and assets in any way related to Gupta.
5.
The parties further agree that Defendants Gupta, The
Nutrition Clinic, Virta-Gupta, their agents, employees, attorneys, and all
persons acting in concert and participation with them, including all
banking and other financial institutions at which they do business,
business partners, and all other corporations over which Defendants
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Gupta, The Nutrition Clinic, or Virta-Gupta exercise control or have an
ownership interest must:
(A) Preserve all business, financial and accounting records,
including bank records, which detail Defendants Gupta’s, The
Nutrition Clinic’s, or Virta-Gupta’s business operations and
disposition of any payment which directly or indirectly arose from
the payment of money to the aforementioned Defendants on behalf
of any healthcare benefit program;
(B) Preserve all medical records, including patient records,
which relate to Defendants Gupta’s, The Nutrition Clinic’s, or
Virta-Gupta’s business operation and/or to services for which claims
were submitted to the federal healthcare benefit programs;
(C) Provide, to the extent not already provided, to Plaintiff
United States of America the following:
(i) a list of all post office boxes or other locations at
which mail addressed to Defendant Gupta, The Nutrition
Clinic, or Virta-Gupta is received;
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(ii) a list of all financial institutions, including but not
limited to banks and brokerage houses, at which are or have
been maintained in the past four years savings, checking, or
any other kind of account or other safe deposit box into which
money has been deposited in Defendant Gupta’s, The
Nutrition Clinic’s, or Virta-Gupta’s names or in the names of
their agents, employees, officers, persons acting in concert with
them, or any business names under which they operate,
together with the number or other designation of each such
account or box;
(iii) a list of all financial institutions, including but not
limited to, banks and brokerage houses, at which are
maintained, or have been in the past four years, savings,
checking, or any other kind of account or other safe deposit
box into which monies received in response to any of the
activities described in Plaintiff United States of America’s
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Complaint have been deposited, together with the number of
such box or other designation of each such account or box; and
(iv) the names, addresses, and telephone numbers of any
individuals who have received remuneration of any kind for
assisting in record-keeping, bookkeeping, accounting,
brokering, or financial, investment, or tax advice or
consultation for Defendant Gupta, The Nutrition Clinic, or
Virta-Gupta in the past four years.
(D) Provide an accounting of the assets in which Defendants
Gupta, The Nutrition Clinic, or Virta-Gupta hold a legal or
equitable interest, by no later than September 16, 2011, and to
provide on a monthly basis, commencing forthwith, suitable reports
detailing their financial condition; and
(E) Complete within ten (ten) calendar days of receipt a
Financial Disclosure Statement form provided to Defendants Gupta,
The Nutrition Clinic, and Virta-Gupta by Plaintiff United States of
America.
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6.
The personal checking account in the name of Jaana Monika
Virta-Gupta located at Associated Bank, Account Number 2261348169,
shall be released from the Temporary Restraining Order and the
Stipulated Injunction, subject to the following:
a.
Defendant Virta-Gupta shall use the account and its balance
only for reasonable living expenses during the pendency of this
Stipulated Preliminary Injunction, not to exceed $4,000.
b.
Defendant Virta-Gupta otherwise agrees to refrain from
alienating, withdrawing, transferring, removing, dissipating, or
otherwise disposing of, in any manner, any moneys or sums
presently deposited or held in Associated Bank, Account
Number 2261348169.
c.
Defendant Virta-Gupta shall provide copies of all periodic
statements from Associated Bank regarding the account
referenced above to the United States within five business
days after receipt of such statements by the defendant. Virta-
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Gupta also shall produce copies of all canceled checks upon
the request of counsel for the United States.
7.
The business checking account in the name of The Nutrition
Clinic, LLC, located at Chase Bank, Account Number 896219771, shall
be released from the Temporary Restraining Order and the Stipulated
Preliminary Injunction, subject to the following:
a.
The funds shall be maintained in the account except to be
used to pay all outstanding bills incurred as a result of The
Nutrition Clinic’s operations prior to July 15, 2011. The
Nutrition Clinic will provide to the United States proof of
outstanding obligations and the payment of these obligations
by September 30, 2011.
b.
The account also shall be used to collect and deposit
outstanding accounts receivable, to the extent any remain
outstanding.
c.
Chase Bank may deduct any reasonable, usual and customary
charges associated with the transfers of funds and the issuance
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of certified checks necessary to carry out the permitted uses
described in paragraphs 6(a)-(b). Chase Bank shall provide an
accounting of such charges, if any, to Counsel for the United
States and to John M. Gilbert, Esq.
8.
The Nutrition Clinic shall provide copies of all periodic
statements for all known bank accounts to the United States within five
business days after receipt of such statements by Defendant The
Nutrition Clinic. Defendant The Nutrition Clinic also shall produce
copies of all canceled checks upon the request of counsel for the United
States.
9.
Defendants The Nutrition Clinic and Virta-Gupta agree to
take all necessary steps during the pendency of this Stipulated Preliminary
Injunction to facilitate the forfeiture of all property traceable to the fraud
scheme charged against Gautam Gupta in United States v. Gautum
Gupta, et al., No. 11 CR 30043, (C.D. Ill. (2011)) and all substitute
assets of equivalent value.
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10.
In the event that circumstances change or additional
information comes to light during the pendency of this Stipulated
Preliminary Injunction, either party may petition the Court for a
modification of it. Prior to seeking such a Court ordered modification,
the parties shall attempt to resolve any such issues in good faith.
11.
13, 2011.
This Stipulated Injunction will expire at 4:00 p.m. on October
Individuals and/or entities to whom this Stipulated Injunction
applies are enjoined from releasing any assets subject to this Stipulated
Injunction pending further order of this Court or upon formal
notification, in writing, by the Office of the United States Attorney. The
Court, for good cause shown, may consider an extension or modification
of this Preliminary Stipulated Injunction. A status hearing will be held at
4:00 p.m. on October 13, 2011.
IT IS SO ORDERED.
ENTERED: September 14, 2011.
FOR THE COURT BY:
s/ Sue E. Myerscough
SUE E. MYERSCOUGH
UNITED STATES DISTRICT COURT
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