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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLORADO

Civil Action No.

UNITED STATES OF AMERICA,

Plaintiff,

v.

$782,893.49 IN UNITED STATES CURRENCY,

Defendant.

_____________________________________________________________________

VERIFIED COMPLAINT FOR FORFEITURE IN REM

_____________________________________________________________________

COMES NOW the United States of America, by and through United States 

Attorney John D. Walsh and Assistant United States Attorney Martha A. Paluch, 

pursuant to Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture 

Actions G(2), and states:

JURISDICTION AND VENUE

1. The United States of America (the United States) has commenced this 

action pursuant to the civil forfeiture provisions of 18 U.S.C. § 981(a)(1)(C), seeking

forfeiture of the defendant property involved in violations of a Federal health care 

offense, 18 U.S. C. § 1347, and wire fraud, 18 U.S.C. § 1343. This Court has 

jurisdiction under 28 U.S.C. §§ 1345 and 1355.

2. Venue is proper under 28 U.S.C. §1395, as the defendant property is 

located, and certain of the acts described herein occurred, in the District of Colorado.

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DEFENDANT PROPERTY

3. Defendant property is described as: $782,893.49 in United States 

Currency, seized on May 9, 2011, from BBVA/Compass Bank Account Number 

2527211657 in the name of A Plus Billing, Inc., pursuant to a federal Seizure Warrant, 

District of Colorado Case Number 11-mc-0034 (“defendant Funds”). Defendant Funds 

are currently being held by the United States Marshals Service in Denver, Colorado.

FACTUAL BASIS FOR FORFEITURE

Except as otherwise noted, all of the following facts and information have been 

discovered through my own investigation and observations, and the observations and 

investigations of fellow law enforcement officers as reported to me. 

BACKGROUND

4. The Medicare program is a federally funded health insurance program. 

Congress established the Medicare program in 1965 as Title XVIII of the Social Security 

Act. The Centers for Medicare and Medicaid Services (CMS), an agency of the United 

States Department of Health and Human Services (HHS), administers the Medicare 

program. Medicare consists of Part A (hospital insurance) and Part B (supplemental 

medical insurance). Medicare Part A provides coverage for inpatient hospitalization, 

skilled nursing facilities, and home health care. Medicare Part B provides coverage for 

medical services and supplies typically delivered in an outpatient setting, including 

services rendered by physicians, psychiatrists and psychologists, as well as physical, 

speech, respiratory, and occupational therapists. Medicare Part B also covers 

laboratory testing and services ordered by authorized health care providers.

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5. The benefits covered by the Medicare Part B Program include medical 

and other health services as provided under 42 U.S.C. § 1395k(a)(2)(B) and as defined 

by 42 U.S.C. § 1395x(s).

6. Reimbursement for Medicare claims is made by the United States through 

HHS. HHS, through CMS, assigns the task of paying Part B claims from the Medicare 

Trust Fund to private insurance carriers pursuant to 42 U.S.C. § 1395u. CMS contracts 

with numerous private insurance organizations to process and pay Medicare claims and 

conduct program integrity activities.

7. TrailBlazer Health Enterprises is the contractor which processes claims for 

Colorado Medicare Part A and Part B services. TrailBlazer makes payments to 

Medicare providers for reasonable and necessary medical services from federal funds 

allocated for that purpose. 

8. Health Integrity is one of several Zone Program Integrity Contractors 

(ZPIC) hired by CMS to perform Medicare program integrity functions, including support 

to Health and Human Services/Office of the Inspector General/Office of Investigations 

(HHS/OIG/OI), relating to allegations of fraud, waste or abuse within the Medicare 

program.

9. Medical and other health services are reimbursable under Part B of the

Medicare Program only if the services provided are reasonable and necessary for the 

diagnosis or treatment of illness or injury or to improve the functioning of a malformed 

body member. Medicare regulations impose a duty on any person or company seeking 

reimbursement not to make false statements or misrepresentations of material facts 

concerning requests for payment under Medicare.

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10. When a provider submits electronic or paper claims to CMS for payment 

on the Health Insurance Claim Form, Form CMS-1500, they attest by their signature to 

the following: 

“I certify that the services shown on this form were medically indicated and 

necessary for the health of the patient and were personally furnished by 

me or were furnished incident to my professional service by my employee 

under my immediate personal supervision, except as otherwise expressly 

permitted by Medicare regulations. NOTICE: Anyone who misrepresents 

or falsifies essential information to receive payment from Federal funds 

requested by this form may upon conviction be subject to fine and 

imprisonment under applicable Federal laws.”

11. Law enforcement is aware of a common fraud scheme which is currently 

being used to steal money from the Medicare program, termed “Medical Provider 

Identity Theft." Medical Provider Identity Theft is generally when criminals use the 

medical provider number of a legitimate doctor or other provider without their knowledge 

or consent to submit fraudulent claims to a health insurance provider. The entities 

engaging in these schemes are also known as False Front Providers (FFP). 

MEDICARE FRAUD SCHEME: A PLUS BILLING, INC.

12. In this case, unknown individual(s) operating as “A Plus Billing, Inc.” stole 

the identity of Colorado physician Dr. Louis C. Cabiling and filed fraudulent 

documentation with Trailblazer Health Enterprises, which documentation listed Dr. 

Cabiling as the practitioner who was allegedly performing the medical services being 

billed to Medicare. In A Plus Billing, Inc.’s Medicare Enrollment Application, Electronic 

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Funds Transfer Authorization Agreement, A Plus Billing, Inc. directed Medicare to 

deposit claim payments into BBVA/Compass Bank account number 2527211657. 

13. In April 2011, Special Agent Charles Klein of the United States 

Department of Health and Human Services (HHS), Office of the Inspector General 

learned that A Plus Billing, Inc. had been paid approximately $800,000.00 from 

Medicare. Specifically, A Plus Billing, Inc. had submitted bills for certain services 

including MRI, allergy, and EKG testing being done at the office of A Plus Billing, Inc., 

located at 600 17th Street, Suite 2800 South, Denver, Colorado, as well as for 

numerous face to face visits, all allegedly performed by Dr. Louis C. Cabiling, who 

resides and practices exclusively in Pueblo, Colorado. 

14. On April 29, 2011, HHS Special Agent Charles Klein attempted to 

telephonically contact Louis C. Cabiling, MD at his office. Sean Cabiling, the adult son 

of Dr. Cabiling, answered the phone and advised Special Agent Charles Klein that he 

was accepting calls on his father's behalf and could answer any business questions. 

Mr. Cabiling stated that his father was a physician who specialized in physical therapy 

and rehabilitation and worked only in the Pueblo, Colorado area, not in Denver, 

Colorado, and that his father was not contracted with any clinical laboratories in Denver. 

After this conversation, HHS Special Agent Charles Klein advised Health Integrity that 

the payments to A Plus Billing, Inc. should stop. 

15. On May 2, 2011, Special Agent Charles Klein visited the office of A Plus 

Billing, Inc., located at 600 17th Street, Suite 2800 South, Denver, CO 80202. Special 

Agent Charles Klein observed that this was the business location for "Your Office 

Denver." An employee of “Your Office Denver” stated that A Plus Billing, Inc. was an 

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active client that only received mail, and had their phone answered by a receptionist at 

this address. There was no physical office space for A Plus Billing, Inc. located at this 

address, as it was a virtual office. The client file for A Plus Billing, Inc. showed the 

business was listed under the name of Aliya A. Valeeva, and that A Plus Billing, Inc. 

paid approximately $150.00 per month in "rent." Investigators have been unable to 

locate Ms. Valeeva; in fact, United States Immigration records indicate that she has not 

been in the United States since 2006.

16. In total, from approximately February 23, 2011, through May 9, 2011, 

Medicare paid $1,838.294.27 to A Plus Billing, Inc., which had been deposited into 

BBVA/Compass Bank account number 2527211657. 

17. Based in part on the facts contained herein, a Civil Seizure Warrant 

(District of Colorado Case No. 11-mc-0034) was obtained and executed for A Plus 

Billing, Inc.’s BBVA/Compass Bank account number 2527211657. Defendant 

$782,893.49 in United States Currency was seized as proceeds traceable to a violation 

of a Federal health care offense in violation of 18 U.S.C. § 1347, and wire fraud in 

violation of 18 U.S.C. § 1343. 

CONCLUSION

18. Based on the information stated herein, there is probable cause to believe 

that unknown individual(s) have stolen the identity of Colorado physician Dr. Louis C. 

Cabiling, and that these same unknown individual(s), through A Plus Billing, Inc., have 

submitted and been paid at least $1,838,294.27 worth of fraudulent Medicare billings. 

By submitting fraudulent claims for medical services to the Medicare program, the 

unknown individual(s) have engaged in a health care fraud scheme to commit the 

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following offenses, among others: Title 18, United States Code, Section 1347 (Health 

Care Fraud) and Title 18, United States Code, Section 1343 (Wire Fraud).

VERIFICATION OF ASHLEY D. SCHROER, SPECIAL AGENT

FEDERAL BUREAU OF INVESTIGATION

I, FBI Special Agent Ashley D. Schroer, hereby state and aver under the pains

and penalties of perjury that I have read the foregoing Factual Basis for Forfeiture and

that the facts and information contained therein are true.

s/ Ashley D. Schroer

ASHLEY D. SCHROER, Special Agent

Federal Bureau of Investigation 

STATE OF COLORADO )

CITY AND )ss.

COUNTY OF DENVER )

The foregoing VERIFIED COMPLAINT FOR FORFEITURE IN REM was sworn 

to and subscribed before me this 6th day of October, 2011, by Ashley D. Schroer, 

Special Agent, Federal Bureau of Investigation. 

s/ Nicole C. Davidson

My Commission Expires 6/15/2014 Notary Public, State of Colorado

FIRST CLAIM FOR RELIEF

19. The Plaintiff repeats and incorporates by reference each of the 

paragraphs above.

20. By the foregoing and other acts, defendant $782,893.49 in United States 

Currency constitutes or is derived from proceeds traceable to a violation of a Federal 

health care offense in violation of 18 U.S.C. § 1347, and is therefore subject to forfeiture 

to the United States pursuant to 18 U.S.C. § 981(a)(1)(C).

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SECOND CLAIM FOR RELIEF

21. The Plaintiff repeats and incorporates by reference each of the 

paragraphs above.

22. By the foregoing and other acts, defendant $782,893.49 in United States 

Currency constitutes or is derived from proceeds traceable to a violation of wire fraud in 

violation of 18 U.S.C. § 1343, and is therefore subject to forfeiture to the United States 

pursuant to 18 U.S.C. § 981(a)(1)(C).

WHEREFORE, the United States prays for entry of a final order of forfeiture for 

defendant $782,893.49 in United States Currency in favor of the United States, that the 

United States be authorized to dispose of the property in accordance with law, that the 

Court enter a finding of probable cause for the seizure of the property, and issue a 

Certificate of Reasonable Cause pursuant to 28 U.S.C. § 2465.

DATED this 6th day of October, 2011.

Respectfully submitted,

JOHN F. WALSH

United States Attorney

 By: s/ Martha A. Paluch

Martha A. Paluch

Assistant United States Attorney

1225 Seventeenth Street, Ste. 700

Denver, Colorado 80202

Telephone: (303) 454-0100

Fax: (303) 454-0402

E-mail: martha.paluch@usdoj.gov

Attorney for Plaintiff

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