Scope and Impact

• Alleged losses: Over $14.6 billion in false claims, with $2.9 billion confirmed loss to government programs  .
• Assets seized: $245 million in cash, luxury vehicles, cryptocurrency, and real estate  .
• Schemes exposed:
  • Operation Gold Rush: $10.6 billion scheme using shell supply companies and stolen identities to bill for medical supplies (e.g., urinary catheters)  .
  • Opioid “pill mills”: 44 professionals allegedly prescribed over 15 million opioid pills improperly  .
  • Telehealth/genetic testing fraud: $1.17 billion in fraudulent telehealth and lab claims  .
  • COVID testing scams: $293 million in false COVID-19 test reimbursements  .
  • Unnecessary wound care & hospice billing: Examples include $87 million hospice fraud in Texas and $900 million wound-graft schemes in Arizona.

Alleged Criminal Statutes

The Indictments rely on multiple federal statutes, including:

1. Health Care Fraud (18 USC § 1347)
   • Prohibits schemes to defraud any health care benefit program.
   • Penalties: up to 10 years imprisonment; if serious bodily injury occurs, up to 20 years; any term of years to life if death results  .
2. Wire Fraud & Mail Fraud (18 USC §§ 1341, 1343)
   • Target schemes using electronic or postal systems to defraud, charged in cases like telehealth and medical supply fraud.
3. Conspiracy to Commit Health Care Fraud (18 USC § 1349)
   • Covers planning or attempt to commit health care fraud, often charged alongside substantive offenses.
4. False Statements Relating to Health Care (18 USC § 1035)
   • Addresses false or misleading certifications in health care submissions.
5. AKS–Linked False Claims
   • Under False Claims Act and Anti‑Kickback Statute, claims tainted by illicit payments become false claims  .
6. Money Laundering (18 USC §§ 1956, 1957)
   • Alleged in cases involving laundering of illicit proceeds (e.g., COVID lab reimbursements) ().
7. Controlled Substances Violations (21 USC § 841)
   • Charged against those prescribing or distributing opioids without medical justification ().

Potential Criminal Penalties

Persons convicted under these statutes face significant consequences:

• Health Care Fraud (18 USC § 1347):
  • Up to 10 years in prison, fines up to $250,000 (individuals) or $500,000 (organizations).
  • If serious injury: up to 20 years.
  • If death results: up to life imprisonment  .
• Wire/Mail Fraud (18 USC §§ 1341, 1343):
  • Up to 20 years imprisonment (30 years if federally funded program affected).
  • Fines up to $250,000 (individual), $500,000 (organization).
• Conspiracy (18 USC § 1349):
  • Equivalent penalties to the underlying crime.
• False Statements (18 USC § 1035):
  • Up to 5 years imprisonment.
• Money Laundering (18 USC § 1956/57):
  • Up to 20 years imprisonment; potential mandatory asset forfeiture.
• Controlled Substance Distribution (21 USC § 841):
  • Varies—could range from 5 years to life, particularly with death or addiction consequences.
• False Claims Act liability:
  • Civil, but can lead to treble damages plus $11,665–$23,331 per false claim; whistleblowers can receive 15–30% of recoveries  .

In Summary

This unprecedented DOJ action marks the largest single-day health care fraud indictment in U.S. history:

• 324 defendants spanning medical professionals and criminal networks.
• $14.6 billion in intended billing; $2.9 billion confirmed losses.
• Schemes included opioid pill mills, telehealth, fraudulent supplies, COVID testing, hospice, and genetic testing.
• Charges include health care fraud, wire/mail fraud, conspiracy, false statements, money laundering, and controlled substance violations.
• Convictions may bring decades behind bars, hefty fines, restitution, and forfeiture.

This operation—dubbed the “2025 National Health Care Fraud Takedown” and part of “Operation Gold Rush”—headlined by high-level prosecutors, accuses a staggering number of people of various frauds against health care programs and allegedly vulnerable patients.

Matthew Galluzzo is a federal criminal defense attorney practicing in New York and Connecticut federal courts. A former Manhattan prosecutor, he has successfully represented numerous individuals accused of federal health care fraud crimes and wire fraud charges. If you or a loved one have been accused as part of Operation Gold Rush or the 2025 National Health Care Fraud Takedown, you should strongly consider contacting Mr. Galluzzo to discuss his legal services.

🔹 Key Federal Statutes Governing Firearm Sales

1. 18 U.S.C. § 922(a)(1)(A): Engaging in the Business Without a License

This statute makes it unlawful for any person, except a licensed importer, manufacturer, or dealer, to engage in the business of importing, manufacturing, or dealing in firearms. Violators can face up to five years in federal prison and fines up to $250,000.

2. 18 U.S.C. § 922(a)(6): False Statements During Firearm Transactions

It is illegal to knowingly make false statements or present false identification when purchasing a firearm. This includes providing inaccurate information on ATF Form 4473. Convictions can result in up to ten years of imprisonment

3. 18 U.S.C. § 922(d): Sale to Prohibited Persons

Selling firearms to individuals prohibited from possessing them—such as felons, fugitives, or those with certain mental health conditions—is a federal offense. Penalties can include up to ten years in prison.

4. 18 U.S.C. § 922(k): Possession of Firearms with Altered Serial Numbers

Possessing, transporting, or receiving firearms with removed or altered serial numbers is prohibited. Violators may face up to five years of imprisonment.

5. 18 U.S.C. § 924(c): Use of Firearm in Relation to a Crime

Using or carrying a firearm during and in relation to any crime of violence or drug trafficking crime carries mandatory minimum sentences:

• 5 years for possession
• 7 years if the firearm is brandished
• 10 years if discharged

These sentences run consecutively to any other sentence imposed.

🔹 Penalties and Sentencing Enhancements

Penalties for illegal firearm sales can be severe, especially when combined with other criminal activities:

• Felon in Possession (18 U.S.C. § 922(g)): Up to 10 years in prison.
• Straw Purchases (18 U.S.C. § 922(a)(6)): Up to 10 years in prison.
• Sale of Illegal Firearms: Up to 10 years in prison.

Mandatory minimum sentences apply in cases involving crimes of violence or drug trafficking.

🔹 Real-World Example: Unlicensed Firearm Manufacturing

In a notable case, Nicholas DeFelice of Montville, Connecticut, was sentenced to over a year in federal prison for illegally manufacturing and selling firearms without a license. Operating under “DeFelice Defense,” he produced and distributed over 200 firearms. An ATF investigation revealed he sold a custom-made firearm to undercover agents. A search of his residence uncovered numerous unregistered firearms and accessories. CT Insider

🔹 Conclusion

Federal laws strictly regulate the sale and distribution of firearms to ensure public safety. Engaging in unlicensed sales, making false statements during transactions, or selling to prohibited individuals can lead to significant legal consequences, including substantial fines and lengthy imprisonment. Compliance with federal firearm regulations is essential for all individuals and entities involved in firearm transactions.

Matthew Galluzzo is a former Manhattan prosecutor and experienced federal criminal defense attorney. He has successfully represented many people investigated for and accused of federal firearms offenses. If you or a loved one have been accused in New York or Connecticut federal court of unlawfully selling firearms, you should strongly consider engaging Matthew Galluzzo.

What Triggers a CPL § 730 Evaluation?

A competency evaluation under CPL § 730 is typically initiated when a judge, defense attorney, or prosecutor expresses concern that a defendant may be “incapacitated”—meaning that due to mental illness or developmental disability, the defendant lacks the capacity to:

• Understand the nature of the criminal proceedings, or
• Assist meaningfully in their own defense.

The court will issue an order for an evaluation by two qualified psychiatric examiners, at least one of whom must be a physician. The other may be a psychologist certified to perform such evaluations.

The Evaluation Process

1. Initial Examinations:
   • Examiners conduct interviews, review records, and prepare reports.
   • Examinations may take place at the courthouse, jail, or a psychiatric facility, depending on the defendant’s condition and location.
2. Findings:
   • If both examiners agree that the defendant is competent, the court generally resumes the criminal proceedings.
   • If both find the defendant incompetent, the court will order a formal hearing.
   • If examiners disagree, the judge decides whether to hold a hearing to resolve the issue.
3. Competency Hearing:
   • A judge (not a jury) hears testimony from the examiners and any other relevant witnesses.
   • The burden is on the state to prove that the defendant is competent by a preponderance of the evidence.
   • If found incompetent, the defendant is deemed an “incapacitated person.”

Placement of an Incapacitated Defendant

When a defendant is found incompetent to stand trial, they are typically committed to the custody of the Commissioner of the Office of Mental Health (OMH) or the Office for People With Developmental Disabilities (OPWDD), depending on their diagnosis.

Defendants are usually placed in one of the following:

• Secure psychiatric centers (e.g., Kirby Forensic Psychiatric Center in NYC or Mid-Hudson Forensic Psychiatric Center upstate),
• Civil psychiatric hospitals, if less security is deemed sufficient,
• Or, in some cases, outpatient treatment settings (though this is rare for felony-level charges).

Duration of Commitment and Reevaluation

• Felony Charges: Defendants may be held for up to one year initially, with periodic reviews.
• Misdemeanor Charges: The maximum period of confinement is 90 days.
• Extension: If the defendant remains incompetent, the court may extend the period of commitment in six-month increments, up to two-thirds the maximum sentence for the top charge.

During confinement, the defendant receives treatment aimed at restoring competency. Progress is reviewed regularly by the psychiatric facility and reports are submitted to the court.

Restoration to Competency and Return to Court

Once a facility determines that the defendant has regained competency:

• A report is sent to the court.
• A hearing may be held to confirm restoration.
• If restored, the defendant returns to criminal court and the case resumes.

If restoration is deemed unlikely within a reasonable period, the criminal charges may be dismissed, and civil commitment proceedings under Mental Hygiene Law Article 9 (involuntary psychiatric hospitalization) may begin.

Conclusion

The CPL § 730 process is a critical safeguard in the criminal justice system, balancing public safety, the rights of the accused, and the ethical imperative not to prosecute individuals who cannot understand or participate in their own defense. Though the timeline and placement can vary depending on the severity of the charges and the individual’s mental health status, the goal remains consistent: ensure fairness in the legal process while providing appropriate mental health care.

If your loved has been arrested and may be suffering from severe mental illness, you should strongly consider engaging Matthew Galluzzo. Mr. Galluzzo is an experienced criminal defense attorney and former Manhattan prosecutor with experience representing people suffering from mental illness, and may be able to assist you.

Key Offenses Classified as Domestic Violence

In New York, acts of domestic violence are prosecuted under specific Penal Law sections, depending on the nature of the offense. Common charges include:

  *   Assault: Causing physical injury to another person.
  *   Menacing: Intentionally placing or attempting to place another person in fear of death or serious physical injury.
  *   Stalking: Engaging in a course of conduct that causes substantial emotional distress or fear.
  *   Harassment: Engaging in a course of conduct or repeatedly committing acts that alarm or seriously annoy another person.
  *   Strangulation: Intentionally impeding the normal breathing or blood circulation of another person by applying pressure to the throat or neck.
  *   Criminal Obstruction of Breathing or Blood Circulation: Similar to strangulation but may involve less force or result in less severe injury.
  *   Criminal Mischief: Damaging or destroying property belonging to another person.
  *   Sexual Offenses: Including sexual abuse, forcible touching, or rape.
  *   Coercion: Compelling or inducing another person to engage in conduct by instilling fear.

These offenses are categorized based on their severity, with corresponding penalties.

Penalties for Domestic Violence Offenses

The penalties for domestic violence offenses in New York City vary depending on the classification of the crime:

  *   Class A Misdemeanors (e.g., Third-Degree Assault, Harassment in the Second Degree):
     *   Up to 1 year in jail.
     *   Fines up to $1,000.
     *   Probation and mandatory counseling or anger management programs.
 
  *   Class E Felonies (e.g., Second-Degree Strangulation):
     *   Up to 4 years in prison.
     *   Fines up to $5,000.
     *   Probation and mandatory counseling.
 
  *   Class D Felonies (e.g., Second-Degree Assault):
     *   Up to 7 years in prison.
     *   Fines up to $5,000.
     *   Probation and mandatory counseling.
 
  *   Class C Felonies (e.g., First-Degree Strangulation):
     *   Up to 15 years in prison.
     *   Fines up to $5,000.
     *   Probation and mandatory counseling.
 
  *   Class B Felonies (e.g., Aggravated Sexual Abuse, Rape in the First Degree, Assault in the First Degree):
     *   Up to 25 years in prison.
     *   Fines up to $5,000.
     *   Probation and mandatory counseling.

In addition to these penalties, individuals convicted of domestic violence offenses may face:

  *   Protective Orders: Courts may issue orders of protection to prevent further contact between the offender and the victim. This can also result in defendants being prohibited from returning to their own homes or communicating with family members (such as children) while the charges are pending.
  *   Firearm Restrictions: Convicted individuals may be prohibited from possessing firearms.
  *   Employment Consequences: A criminal conviction can impact current employment and future job prospects.
  *   Immigration Consequences: Non-citizens may face deportation or difficulty obtaining citizenship.

Recent Legislative Developments

New York State has enacted several laws to address domestic violence more effectively:

  *   Melanie’s Law: Signed into law in November 2024, this legislation allows courts to issue orders of protection for all family members of domestic violence victims, regardless of their age. This law was prompted by the tragic murder of Melanie Chianese by her mother’s abusive ex-boyfriend in 2022. Previously, protective orders could only be issued for children under 18. Melanie’s Law aims to close this legal loophole and expand protections for domestic violence victims to all their family members.
  *   Domestic Violence Survivors Justice Act: This act allows for reduced sentences for individuals convicted of serious crimes, such as murder, if they can demonstrate that they were victims of significant domestic abuse. The law aims to provide justice for those who commit crimes in response to prolonged abuse.

Conclusion

Domestic violence offenses in New York City are treated with utmost seriousness, and the legal system provides various avenues for both prosecution and defense. The penalties for such offenses can be severe, impacting an individual’s freedom, reputation, and future opportunities. Oftentimes complaints are made to the police in the heat of the moment, but arrests may be made and cases pursued even where complainants wish to retract their complaints.

If you or someone you know is facing domestic violence charges, it is crucial to seek experienced legal counsel to navigate the complexities of the legal system and to ensure that rights are protected throughout the process. Matthew Galluzzo is a former Manhattan supervising prosecutor within the domestic violence unit. He is an experienced criminal defense attorney who has successfully defended dozens of people accused of domestic violence offenses of all sorts. If you or a loved one have been arrested for domestic violence, you should strongly consider engaging him to be your lawyer.

an unserialized “ghost gun” seized from a client

🛠️ Defining Ghost Guns and Unserialized Components

Under New York law, a “ghost gun” refers to an unserialized firearm, including both completed and unfinished frames or receivers. An “unfinished frame or receiver” is defined as any material that has been shaped or formed for the purpose of becoming the frame or receiver of a firearm and which may readily be made into a functional frame or receiver through milling, drilling, or other means. 

⚖️ Key Statutes and Offenses

1. Criminal Sale of a Ghost Gun in the Second Degree (Penal Law § 265.60)

• Offense: Knowingly selling, exchanging, giving, or disposing of a ghost gun to another person.
• Exceptions: Not applicable if the individual voluntarily surrenders the ghost gun to law enforcement or, within six months, disposes of it to a licensed gunsmith.
• Penalty: Class E felony.  

2. Criminal Sale of a Ghost Gun in the First Degree (Penal Law § 265.61)

• Offense: Selling, exchanging, giving, or disposing of ten or more ghost guns to another person.
• Exceptions: Similar to the second-degree offense, including voluntary surrender or transfer to a licensed gunsmith within six months.
• Penalty: Class D felony.

3. Criminal Possession of an Undetectable Firearm (Penal Law § 265.01(9))

• Offense: Knowingly possessing a firearm that is not detectable by metal detectors or X-ray machines.
• Penalty: Class D felony. 

🛡️ Legislative Background

In 2021, New York enacted the Jose Webster Untraceable Firearms Act and the Scott J. Beigel Unfinished Receiver Act, which collectively prohibit the possession and sale of ghost guns and their components. These laws also require gunsmiths and dealers to register firearms and unfinished frames or receivers they assemble. 

📌 Enforcement and Legal Precedents

In March 2024, New York Attorney General Letitia James secured a $7.8 million judgment against Florida-based retailer Indie Guns for illegally selling ghost gun components in New York. The company was permanently banned from selling such parts in the state.

Additionally, in December 2024, Congressman Ritchie Torres called on Governor Kathy Hochul to close loopholes in New York’s ghost gun laws, particularly concerning the manufacturing of 3D-printed ghost guns, following a high-profile murder involving such a weapon.

📝 Conclusion

New York’s stringent laws aim to curb the proliferation of ghost guns and enhance public safety. Individuals found in violation of these statutes face serious legal consequences, including felony charges and significant penalties. The state’s proactive approach underscores its commitment to addressing the challenges posed by untraceable firearms. Of course, the possession or sale or use of ghost guns can also be prosecuted in federal courts by federal prosecutors under federal law, too.

Matthew Galluzzo is a former Manhattan prosecutor and experienced criminal defense attorney who has successfully defended and represented people arrested for the possession of ghost guns. If you or a loved one have been arrested for this offense in the New York City area, you should strongly consider engaging Matthew Galluzzo to be your attorney.

Former federal prosecutor Matthew Galluzzo on Donald Trump “hush money” trial guilty verdict | CBC.ca

Portions of the interview appeared in this article on Monday, May 26.

Donald Trump bientôt fixé sur son sort judiciaire : “On peut avoir de très bonnes preuves, mais au final, le jury est la clé” – La Libre

Matthew Galluzzo has significant experience representing individuals accused of narcotics offenses in federal court. If you or a loved one have been accused of such a crime, you should strongly consider contacting Mr. Galluzzo about possible representation. He regularly receives glowing feedback from federal judges in these cases, and his consistently gets his clients excellent results.

If you or a loved one would like to pursue a motion for sealing of an old criminal record in New York state, you should strongly consider contacting the Law Office of Matthew Galluzzo PLLC. Matthew Galluzzo is an excellent advocate who writes compelling applications for his clients. He believes strongly in helping people earn second chances, and that people who have repaid their debts to society should no longer be held back by a criminal record stemming from an old mistake.