APR 11 (OAKLAND, Calif.) —An eight count indictment was unsealed in federal court this morning charging Dr. Toni Daniels with conspiracy to commit health care fraud, conspiracy to distribute and dispense controlled substances, distribution of controlled substances, and willful failure to file a tax return, announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, U.S. Department of Health & Human Services, Office of Inspector General Special Agent in Charge Ivan Negroni, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment, from October 2010 through April 2011, Toni Daniels was a self-employed medical doctor who met with customers at various retail establishments in and around Oakland, including Burger King, Chicken and Waffles, Dick’s Donuts, and Starbucks. During these meetings, Daniels allegedly sold prescriptions for oxycodone, hydrocodone, and other controlled substances, in exchange for cash payments, without first determining whether the purchasers had any medical need for these prescriptions. The Indictment further alleges that Daniels knew that many of her customers used Medicare, Medi-Cal, and other private health insurance plans to cover the cost of the medically unnecessary medications that she prescribed. Between Oct. 15, 2010 and April 15, 2011, Medicare and Medi-Cal paid over $64,000 in false and fraudulent claims for drugs prescribed by Daniels. The Indictment also alleges that Daniels made a gross income of $143,869 during calendar year 2010 and willfully failed to file an income tax return for that year.
Daniels, 62, of Berkeley, was indicted on March 27, 2014. She was arrested last night and made her initial appearance today before the Honorable Kandis A. Westmore, United States Magistrate Court Judge in Oakland. Daniels was remanded into custody and her next court appearance is scheduled for Monday, April 14, at 9:30 a.m. before judge Westmore for identification of counsel.
The maximum statutory penalties for conspiring to commit health care fraud, in violation of 18 U.S.C. § 1349, are a prison term of 10 years, a fine of $250,000, and three years of supervised release. The maximum statutory penalties for conspiring to distribute controlled substances and for distributing controlled substances, in violation of 21 U.S.C. §§ 846 and 841(a)(1), are a prison term of 20 years, a fine of $1,000,000, and three years of supervised release. The maximum statutory penalties for willfully failing to file a tax return, in violation of 26 U.S.C. § 7203, are a prison term of one year, a fine of $25,000, and three years of supervised release. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Randy Luskey is prosecuting this case with the assistance of Vanessa Vargas. The prosecution resulted from a joint investigation by the FBI, the U.S. Department of Health & Human Services, Office of Inspector General, the Tactical Diversion Squad of the Drug Enforcement Administration, and IRS-Criminal Investigation.Please note, an indictment contains only allegations against an individual and, as with all defendants, Toni Daniels must be presumed innocent unless and until proven guilty.