International Law Enforcement Operation Takes Down LockBit RaaS Infrastructure
The prolific LockBit ransomware-as-a-service (RaaS) group has been severely disrupted by a global law enforcement operation that has seen much of the group’s infrastructure seized, including servers, its affiliate portal, Tor sites, Stealbit data exfiltration tool, public-facing data leak site, and more than 200 cryptocurrency wallets. Two individuals who conducted attacks using LockBit ransomware have been arrested in Poland and Ukraine, and they will be extradited to the United States to face trial. The French and U.S. judicial authorities have also issued three international arrest warrants and five indictments. More than 1,000 decryption keys were obtained and a free decryptor for LockBit 3.0 has been created and made available on the No More Ransom portal. The seizure of the cryptocurrency wallets means it might be possible for victims to recover some of the ransoms they paid. LockBit was branded the world’s most harmful cybercrime group by the UK’s National Crime Agency (NCA). The RaaS group has been active for the past four years and has targeted thousands of organizations...
Boss of Gang Behind Attack on University of Vermont Medical Center Facing 40 Years in Jail
A Ukrainian man accused of leading racketeering groups who conspired to infect thousands of business computers with malware has pleaded guilty in federal court in Nebraska to one count of conspiracy to commit wire fraud and one count of conspiracy to break U.S. anti-racketeering laws. One of the victims, the University of Vermont Medical Center, was infected with ransomware resulting in IT systems being taken offline for more than two weeks. The attack prevented the medical center from providing critical patient services for more than two weeks. The Department of Justice said the attack on the medical center created a risk of death or serious bodily injury for patients and cost the medical center more than $30 million. Vyacheslav Igorevich Penchukov, 37, aka Vyacheslav Igoravich Andreev and known online as Tank and Father, was accused of leading two cybercriminal groups, JabberZeus and IcedID, between 2009 and 2021. JabberZeus distributed the Zeus banking trojan and IcedID distributed the IcedID banking trojan. Both of these popular malware variants were used to steal usernames,...
Connexin Software Proposes Class Action Lawsuit Settlement to Avoid Bankruptcy
Connexin Software, which does business as Office Practicum, has proposed a $4 million settlement to resolve a consolidated class action lawsuit stemming from a 2022 data breach that affected almost 3 million individuals. Office Practicum provides pediatric-specific health information technology solutions to healthcare providers, including electronic health records, practice management software, billing services, and business analytics tools. On August 26, 2022, Connexin Software said it detected a data anomaly within its internal network and the subsequent forensic investigation confirmed that an unauthorized third party had obtained an offline set of patient data that was used for data conversion and troubleshooting. The compromised data included the protected health information of 2,675,934 patients, the majority of whom were children. The compromised data included names, guarantor names, parent/guardian names, addresses, email addresses, dates of birth, Social Security numbers, health insurance information, medical and treatment information, and billing and claims data. Several...
Telemedicine Company Owner Agrees to Plead Guilty in $110 Million Medicare Fraud Scheme
The owner of the companies Expansion Media and Hybrid Management Group has agreed to plead guilty to one count of conspiracy to commit healthcare fraud for his role in a $110 million fraud scheme that provided unnecessary durable medical equipment (DME) to Medicare beneficiaries. Between March 2016 and January 2023, Steven Richardson, 40, of Parkland, FL, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. Those companies allegedly paid Richardson’s two companies to generate orders for DME such as back and knee braces for Medicare beneficiaries on a per-order basis. The orders needed to be signed by doctors and nurses who deemed the orthotic devices to be medically necessary. Richardson is alleged to have worked with medical staffing companies to find clinicians willing to review and sign prepopulated orders without having any contact with the Medicare beneficiaries. A signed order indicates that the clinician has performed a legitimate examination of the beneficiary and found the orthotics to be medically...
Pharmacy CMO Excluded from Federal Healthcare Programs for 6 Years
The former Chief Marketing Officer (CMO) of the New Castle, DE-based pharmacy BioTek reMEDys Inc. (BioTek) has been added to the HHS-OIG exclusions list for 6 years. Carla Sparkler agreed to the 6-year exclusion from Federal healthcare programs to resolve allegations she violated the False Claims Act by paying kickbacks to patients and physicians and waiving co-pays to ensure that BioTek’s revenue stream was protected. Certain medications covered by Medicare require beneficiaries to pay a proportion of the cost in the form of a copayment, coinsurance, or deductible (copays), which were included in the Medicare program by Congress in order to reduce healthcare costs. The Federal Anti-Kickback Statute prohibits the inducement of physicians to prescribe specific medications, payment of remuneration to physicians in exchange for patient referrals, and companies are not permitted to routinely waive the copays of Medicare patients without determination of financial need. Sparkler was alleged to have orchestrated a scheme to provide inducements to physicians and to cover up kickbacks for...



