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Menendez Indictment

Menendez Indictment

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Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3301
RECEIVED
OCT
2016 8:30
WILLIAM WALSH, CLERK
UNITED STATES DISTRICT COURT
DISTRICT NEW JERSEY
UNITED STATES AMERICA
ROBERT 1IENENDEZ
(Counts 2,3, 11, 13, 15, 16, 17, 18)
No. 2:15-cr-00155-WHW
Count U.S.C. 371
(Conspiracy Commit Bribery
and Honest Services Wire Fraud)
and
SALOMON MELGEN
(Counts 10, 12, 14, 15, 16, 17),
Defendants.
Count U.S.C.
(Travel Act)
1952,
Counts 3-14: U.S.C.
(Bribery)
201(b)
Counts 15-17: U.S.C. 1341,
1343, 1346,2
(Honest Services Fraud)
Count 18: U.S.C.
(False Statements)
1001
Forfeiture Notice
SUPERSEDII INDICTMENT
THE GRAND JURY CHARGES:
COUNT ONE U.S.C. 371
(Conspiracy Commit Bribery and Honest Services Wire Fraud) all times material this indictment:
New Jersey.
Defendant ROBERT MENENDEZ was United States Senator from the State was previously member the United States House Representatives.
MENENDEZ was sworn United States Senator about January 17, 2006. United
States Senator. MENENDEZ owed fiduciary duty the United States and the citizens New
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3302
Defendant SALOMON MELGEN was ophthalmologist who lived and practiced the State Florida.
RELEVANT INDIVIDUALS AND ENTITIES
Vitreo-Retinal Consultants the Palm Beaches, P.A. (VRC) was the company
through which MELGEN operated his ophthalmology practice. MELGEN was VRC sole owner.
The Office Senator Robert Menendez, based Washington, D.C., and New
Jersey, was MENENDEZ official government office.
Menendez for Senate, based New Jersey, was MENENDEZ campaign entity.
Person was MELGEN personal assistant and son-in-law.
Staffer was MENENDEZ Chief Staff from about June 2008
about March 2014.
THE CONSPIRACY AND iTS OBJECTS
From least about January 2006 through about January 2013, the
District New Jersey and elsewhere, the defendants,
ROBERT MENENDEZ and
SALOMON MELGEN,
did knowingly combine, conspire, confederate, and agree with each other and others known and
unknown the Grand Jury commit offense against the United States; that is:
to, directly and indirectly, corruptly give, offer, and promise anything
value public official and any other person and entity, with intent influence official act;
that is, offering give MENENDEZ, United States Senator, and other persons and entities,
things value influence official acts benefitting MELGEN personal and business interests, violation U.S.C.
201(b)(1)(A);
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3303
to, being public official, directly and indirectly, corruptly demand, seek,
receive, accept, and agree receive and accept anything value personally and for any other
person and entity, return for being influenced the performance official act; that is,
MENENDEZ, United States Senator, sought and received things value from MELGEN
order influence MENENDEZ official acts, violation U.S.C.
201(b)(2)(A); and devise and intend devise scheme and artifice defraud and deprive
the United States and the citizens New Jersey the honest services public official; that is, deprive the United States and the citizens New Jersey the honest services MENENDEZ, United States Senator elected the citizens New Jersey, violation U.S.C.
1341,
1343, and 1346.
PURPOSE THE CONSPIRACY
10.
The purpose the conspiracy was for the defendants use MENENDEZ official
position United States Senator benefit and enrich themselves through bribery.
MANNER AND MEANS
11.
The manner and means which the defendants and others carried out the
conspiracy included, but were not limited to, the following:
12.
MELGEN offered and gave, and MENENDEZ solicited and accepted from
MELGEN, things value, including domestic and international flights private jets, first-class
domestic airfare, use Caribbean villa, access exclusive Dominican resort, stay
luxury hotel Paris, expensive meals, and golf outings.
13.
MELGEN financed things value gave MENENDEZ through corporate
entities.
_______
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3304
14.
MELGEN, through his companies, gave MENENDEZ and his guests free flights his private jets. MELGEN company, Melissa Aviation, owned ten-seat Hawker Siddeley,
from about April 2003 about December 2011. MELGEN used another company,
DRM Med Assist, LLC, purchase twelve-seat Challenger about June 2009. These aircraft
were flown MELGEN private flight staff and stocked with refreshments for passengers.
MELGEN furnished MENENDEZ with many flights these private jets over the course
several years, which MENENDEZ accepted cost himself. more than one occasion,
MENENDEZ brought guest. least one occasion, MENENDEZ guest flew the plane
without MENENDEZ order meet MENENDEZ for weekend stay MELGEN villa
the Dominican Republic.
15.
MELGEN offered and gave, and MENENDEZ solicited and accepted from
MELGEN, vacations MELGEN villa Casa Campo, luxury golf and sporting resort
located Romana, the Caribbean coast the Dominican Republic.
The ocean-side
community has marina, three golf courses, thirteen tennis courts, three polo playing fields,
equestrian facilities, 245-acre shooting facility, spa, beaches, restaurants, and hotel.
MELGEN owns Spanish-style vacation villa Casa Campo. Located one the three golf
courses, MELGEN villa opens courtyard, has its own pool, and serviced MELGEN
private staff, which cooks, cleans, provides transportation, and generally caters the needs
MELGEN and his guests.
16.
MELGEN offered and gave, and MENENDEZ solicited and accepted from
MELGEN, hundreds thousands dollars contributions entities that benefitted
MENENDEZ 2012 Senate campaign, and $20,000 legal defense fund, exchange for
specific requested exercises MENENDEZ official authority.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3305
17.
MENENDEZ concealed things value solicited and accepted from MELGEN knowingly and willfully omitting them from the annual Financial Disclosure Reports was
statutorily required complete under the Ethics Government Act. Specifically, reports
MENENDEZ filed between 2007 and 2012, never disclosed any the reportable gifts that
received from MELGEN.
18.
MENENDEZ withheld information from his Senate staff conceal the extent
his official action MELGEN behalf.
19.
MELGEN used his personal assistant and agent, Person help manage his
dealings with MENENDEZ, including agreeing MENENDEZ solicitations for things value,
offering and providing MENENDEZ with things value, equipping MENENDEZ and
MENENDEZ Senate staff with information and resources promote MELGEN personal and
business interests, and requesting official action from MENENDEZ and MENENDEZ Senate
staff needed.
20.
MENENDEZ used the Chief Staff his Senate Office, Staffer help manage
his dealings with MELGEN, including soliciting and accepting things value from MELGEN,
accommodating MELGEN requests for official action, monitoring the progress
MENENDEZ Senate staffs advocacy MELGEN behalf, and updating MELGEN the
status and progress MENENDEZ official action MELGEN behalf.
21.
MENENDEZ used his Senate staff accommodate MELGEN requests for
official action, including collecting information from MELGEN and his agents about MELGEN
needs and interests. arranging for MELGEN meet with United States Senator, and advocating MELGEN behalf Executive Branch officials.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3306
22.
MENENDEZ used the prestige, authority, and influence his status United
States Senator promote MELGEN personal and business interests with United States
Ambassador, fellow United States Senators, and Executive Branch officials, including member the President Cabinet.
23.
MENENDEZ used the power his Senate office the following:
influence the immigration visa proceedings MELGEN foreign
pressure the U.S. Department State (State Department) influence the
girlfriends;
Government the Dominican Republic abide MELGEN multi-million dollar foreign
contract provide exclusive cargo screening services Dominican ports;
stop the U.S. Customs and Border Protection (CBP), component the
U.S. Department Homeland Security, from donating shipping container monitoring and
surveillance equipment the Dominican Republic donation that would threaten MELGEN
multi-million dollar foreign contract provide exclusive cargo screening services Dominican
ports; and
influence the outcome the Centers for Medicare and Medicaid Services
(CMS administrative action seeking millions dollars Medicare overbillings that MELGEN
owed the Federal Government.
OVERT ACTS
24. furtherance the conspiracy, and accomplish its objects, MENENDEZ,
MELGEN. and others committed the following overt acts the District New Jersey and
elsewhere:
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3307
Things Value
Private, Chartered, and First-Class Commercial Flights
25.
MELGEN, directly and through his companies and personal assistant, Person
gave MENENDEZ and his guests free private, chartered, and first-class commercial flights for
personal trips, including the following: about August 18, 2006, MENENDEZ and his guest, Guest traveled MELGEN private jet from West Palm Beach, Florida, the Dominican Republic for
vacation MELGEN villa Casa Campo. about August 24, 2006, MELGEN sent his private jet from West Palm
Beach, Florida, the Dominican Republic order pick MENENDEZ and his guest, Guest fly them New Jersey after their vacation MELGEN villa Casa Campo. about August 24, 2006, MENENDEZ and his guest, Guest traveled MELGEN private jet from the Dominican Republic Teterboro, New Jersey, with stop
West Palm Beach, Florida. about April 2007, MENENDEZ traveled MELGEN private
jet from West Palm Beach, Florida, the Dominican Republic for vacation MELGEN villa Casa Campo. about April 2007, after MENENDEZ vacation MELGEN
villa Casa Campo, MELGEN furnished MENENDEZ with free flight from the Dominican
Republic Fort Lauderdale, Florida, private jet owned MELGEN business associate.
MELGEN own private jet had suffered mechanical problem and was unavailable fly back
the United States.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3308 about August 30, 2008, MELGEN sent his private jet from the
Dominican Republic Teterboro, New Jersey, order pick MENENDEZ and his guest,
Guest fly them the Dominican Republic for vacation MELGEN villa Casa
Campo. about August 30, 2008, MENENDEZ and his guest, Guest traveled MELGEN private jet from Teterboro, New Jersey, West Palm Beach, Florida, where they
stayed overnight before traveling the Dominican Republic the next day. about August 31, 2008, MENENDEZ and his guest, Guest traveled MELGEN private jet from West Palm Beach, Florida, the Dominican Republic. about September 2008, MELGEN sent his private jet from West
Palm Beach, Florida, the Dominican Republic order pick MENENDEZ and his guest,
Guest fly them New Jersey after their vacation MELGEN villa Casa Campo. about September 2008, MENENDEZ and his guest, Guest
traveled MELGEN private jet from the Dominican Republic Teterboro, New Jersey, with stop West Palm Beach, Florida. about May 28, 2010, MENENDEZ guest, Guest traveled
MELGEN private jet from West Palm Beach, Florida, the Dominican Republic, order
meet MENENDEZ for vacation MELGEN villa Casa Campo. about June 2010, MENENDEZ guest, Guest returned from the
Dominican Republic West Palm Beach, Florida, MELGEN private jet, after vacationing
with MENENDEZ MELGEN villa Casa Campo.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3309 about August 2010, MELGEN sent his private jet from West Palm
Beach, Florida, the Washington Metropolitan Area, order pick MENENDEZ fly him the Dominican Republic for vacation MELGEN villa Casa Campo. about August 2010, MENENDEZ traveled MELGEN private
jet from the Washington Metropolitan Area the Dominican Republic, with stop West Palm
Beach, Florida. about August 2010, after his vacation MELGEN villa Casa Campo, MENENDEZ traveled MELGEN private jet from the Dominican Republic
Teterboro, New Jersey, with stop West Palm Beach, Florida. about September 2010, MELGEN sent his private jet from the
Dominican Republic Teterboro, New Jersey, order pick MENENDEZ and his guest,
Guest fly them the Dominican Republic for vacation Punta Cana. about September 2010, MENENDEZ and his guest, Guest
traveled MELGEN private jet from Teterboro, New Jersey, the Dominican Republic, with stop West Palm Beach, Florida. about September 2010, after their vacation Punta Cana,
MENENDEZ and his guest, Guest traveled MELGEN private jet from the Dominican
Republic Teterboro, New Jersey, with stop West Palm Beach, Florida. about October 2010, MELGEN, through Person bought
MENENDEZ first-class airline ticket cost approximately $890.70 for flight from
Newark, New Jersey, West Palm Beach, Florida, departing the next day. about October 11, 2010, MELGEN, through Person paid
approximately $8,036.82 charter private jet fly MENENDEZ that day from West Palm
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3310
Beach, Florida, the Washington Metropolitan Area. MENENDEZ was the only passenger
that chartered flight.
26,
MENENDEZ did not pay for any these flights the time took them.
Vacations MELGEN Caribbean Villa Casa Campo
27.
Between about August 2006 and about January 2013, MENENDEZ
stayed MELGEN vacation villa Casa Campo numerous occasions, with and without
MELGEN present. more than one occasion, MENENDEZ was accompanied guest.
Three Nights the Park Hyatt Paris-Vend
28.
From about April 2010, through about April 11, 2010, MENENDEZ
stayed executive suite the five-star Park Hyatt Paris-Vend valued $4,934.10.
MENENDEZ solicited and accepted from MELGEN 649,611 American Express Membership
Rewards points (hereinafter AmEx points order pay for the suite.
29.
MENENDEZ planned the personal trip Paris spend weekend with woman
with whom had personal relationship. That woman was planning travel Paris with her
sister, who was going business trip.
30. about March 2010, MENENDEZ emailed the sister, asking her where she
was planning stay Paris. The sister responded that day and informed him that she would
staying the Park Hyatt. MENENDEZ confirmed that would also book room there.
31.
Also about March 2010, MENENDEZ emailed Staffer his Office
Manager, asking him research the Park Hyatt rates, including whether they had government
rate available for the dates April and 10, 2010.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3311
32.
Later that day, Staffer responded that the Park Hyatt did have government rate,
and that would $798.75 per night for Park Deluxe King and $934.82 per night for Park
Suite King. The standard rates for these rooms were $870.87 and $1,006.94, respectively.
33. about March 18, 2010, MENENDEZ emailed the sister and asked her her
company (through which she would making the reservation for her business trip) had any
special rates the Park Hyatt.
34. about March 24, 2010, MENENDEZ sent MELGEN email which
asked MELGEN book either the Park Suite King the Park Deluxe King the Park Hyatt
his behalf both rooms featuring, according MENENDEZ email, king bed, work area with
internet, limestone bath with soaking tub and enclosed rain shower, [and] views courtyard
streets. MENENDEZ explained, You call American Express Rewards and they will book for
you, would need name.
35.
The next day, MELGEN redeemed American Express Travel Credit for 649,611
points cover the cost three-night stay Park Executive Suite for MENENDEZ. Person emailed MENENDEZ the reservation confirmation, reflecting that the suite value was
$1,536.96 per night, plus $323.22 fees and tax recovery charges, for total value $4,934.10
for the three nights.
Weekend Punta Cana
36. about the weekend September 2010, through September 2010,
MENENDEZ and guest, Guest traveled wedding Punta Cana the Dominican
Republic, traveling roundtrip free charge MELGEN private jet, described paragraphs
25p through 25r above.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3312
37.
From about September 2010, through about September 2010,
MENENDEZ and his guest, Guest stayed free charge two-bedroom suite with MELGEN
and his wife the Tortuga Bay Hotel Puntacana Resort and Club. MELGEN paid approximately
$769.40 the Tortuga Bay Hotel Puntacana Resort and Club for the accommodations.
$20,000 MENENDEZ Legal Defense Fund
38. pay for litigation arising from recall effort, MENENDEZ created legal
defense fund called The Fund Uphold the Constitution.
39. about April 30, 2012, Staffer sent email Person with the subject
line Humbly Asking, which solicited, among other things, $20,000 donation
MENENDEZ legal defense fund.
40.
That same day, Person responded:
Regarding your request. don worry. will take care it. Dr. Melgen will calling you tomorrow speak further.
41. about May 16, 2012, MELGEN and his wife wrote $20,000 check
MENENDEZ legal defense fund.
Other Things Value
42. about October 2008, MELGEN hired car service company drive
MENENDEZ from Hoboken, New Jersey, and around New York City, New York, cost
$875.12.
43. about January 10, 2013, MENENDEZ, MELGEN, and Person golfed
together the private Banyan Golf Club West Palm Beach, Florida, MELGEN paid for the
greens fees. After the round golf, Person paid $356.80 for meal the Raindancer Steak
House West Palm Beach, Florida.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3313
$751,500 2012 Campaign Contributions
44.
MENENDEZ ran for and won reelection the United States Senate November
2012. From about May 2012 through about October 2012, MELGEN contributed over
$750,000 entities supporting MENENDEZ reelection effort.
45.
$143,500 New Jersey State and County Democratic Party Entities about April 30, 2012, the same email Person described above
paragraph 39, Staffer solicited MELGEN for contributions the New Jersey Democratic State
Committee benefit MENENDEZ reelection efforts. that email, Staffer wrote that the
Senator and humbly wanted put big ask before [MELGEN], specifying that: trying raise money into the New Jersey Democratic State Committee. The
Committee vital the Senator efforts the state party will conduct voter
contact and get out the vote activities behalf Senator Menendez and other
congressional candidates the state. The account named New Jersey
Democratic State Committee Victory Federal. The limit per individual $10,000.
Could Dr. Melgen and family members consider giving total $40,000?
Staffer observed that MELGEN had been loyal and helpful anyone out there and noted
that there may bigger opportunities out there for the doctor join later this summer that
will beneficial the Senator re-election effort.
46. noted above paragraph 40, that same day, Person responded:
Regarding your request. don worry. will take care it. Dr. Melgen will calling you tomorrow speak further.
47. the phone.
Just over ten days later, about May 10, 2012, Staffer and MELGEN spoke
MELGEN told Staffer that would make the contributions Staffer had
requested and that Person would manage the process. The following day, Staffer emailed
Person memorialize his conversation with MELGEN and stated, would great the
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3314
contributions could sent via Fedex home address and distribute them once receive
them.
48. about May 16, 2012, MELGEN and his wife wrote $20,000 check New
Jersey Democratic State Committee Victory Federal Account. the check memo line MFS
Contribution was written and subsequently crossed out. Person overnighted the checks
Staffer via Federal Express his home address.
49.
That same day, about May 16, 2012, MELGEN daughter and her husband,
Person wrote $20,000 check New Jersey Democratic State Committee Victory Federal
Account. the check memo line (MFS) Menendez Contribution was
written
and
subsequently crossed out.
50.
Also that same day, about May 16, 2012, MELGEN issued $20,000 check
through VRC, his ophthalmology practice, MELGEN daughter.
51. about September and October 2012, MELGEN issued more than $100,000
checks through VRC several New Jersey county Democratic Party committees and
organizations that supported MENENDEZ reelection bid: about September 30, 2012, MELGEN, through VRC, gave $16,500 the Union County Democratic Organization; about October 1,2012, MELGEN, through VRC, gave $37,000 the
Passaic County Democratic Organization; about October 12, 2012, MELGEN, through VRC, gave $25,000
the Camden County Democratic Committee; and about October 12, 2012. MELGEN, through VRC, gave $25,000
the Essex County Democratic Committee.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3315
ii.
52.
$8,000 Contribution Satisfy MENENDEZ Financial Obligation Another Senator Campaign
During the 2012 election cycle, Senator United States Senator, raised
approximately $25,000 support MENENDEZ reelection efforts. MENENDEZ agreed raise commensurate amount money for Senator who was also running for reelection 2012.
53. about July 17, 2012, MENENDEZ fundraiser emailed Person soliciting contribution from MELGEN Senator Specifically, the fundraiser wrote the following:
The Senator asked write you and ask for your help. are raising money
for Senator [1] because she helped earlier this Spring. She raised $25k for our
campaign and now are returning the favor because she facing primary
August.
Will you and [your wife] help meet our obligations and contribute $5k each
Senator [1] campaign? feel indebted Senator [1] and would really
appreciate your help.
54. about July 20, 2012, different MENENDEZ fundraiser emailed
MENENDEZ stating that MELGEN would contribute the requested $10,000 Senator but
you [(MENENDEZ)] have email him and ask? Will you? MENENDEZ responded,
need that much? will but want make sure need that much, thought were close
commitments. The fundraiser replied that they had obtained $17,000 commitments Senator which MENENDEZ replied, will ask for 8k.
55.
Three days later, about July 23, 2012, Person emailed the fundraiser
referenced paragraph 53, stating, FYI, $8,000 will sent tomorrow Dr. and Mrs. Melgen
behalf.
56.
That same day, about July 23, 2012, MELGEN and his wife gave $8,000
the campaign Senator Prior this contribution, MELGEN had never given any money
Senator campaign.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3316
iii.
57.
$600,000 Majority PAC, Earmarked for the New Jersey
Senate Race
Between about June 2012. and about October 12, 2012, MELGEN
gave $600,000 Majority PAC, Super PAC whose purpose was protect and expand the
Democratic majority the U.S. Senate. The $600,000 was divided into two $300,000 payments,
both which MELGEN made through VRC, MELGEN earmarked both $300,000 payments for
the New Jersey Senate race. MENENDEZ was the only Democrat running for the Senate New
Jersey that year.
58. about June 2012, MELGEN issued $300,000 check from VRC
Majority PAC. This occurred the same day that MELGEN attended and served the Host
Committee for MENENDEZ annual fundraising event New Jersey.
59.
MELGEN gave this first $300,000 payment Person close personal friend
MENENDEZ, who also attended and served the Host Committee for MENENDEZ annual
fundraising event New Jersey. Person sent the check Fundraiser fundraiser for Majority
PAC, via FedEx from New Jersey Washington, D.C. Upon receiving the check June 2012,
Fundraiser wrote email Fundraiser another Majority PAC fundraiser, with the subject
line Majority PAC (not PMUSA): $300,000 earmarked for New Jersey.
60. about October 12, 2012, MELGEN issued second $300,000 check from
VRC Majority PAC.
61. about October 16, 2012, Fundraiser wrote Fundraiser email with the
subject line, Vitreo-Retinal Consultants
Entire 00k [Majority PAC] earmarked for New
Jersey,
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3317
II.
Concealment
62. United States Senator, MENENDEZ was required the Ethics
Government Act 1978 submit yearly Financial Disclosure Report. reports MENENDEZ
filed from 2007 2012, did not disclose any the reportable gifts that received from
MELGEN.
63. about June 26, 2007, MENENDEZ filed Financial Disclosure Report
which certified that did not receive any reportable gifts calendar year 2006. signed,
CERTIFY that the statements have made this form and all attached schedules are true,
complete and correct the best knowledge and belief.
64. about April 29, 2008, MENENDEZ filed Financial Disclosure Report
which certified that did not receive any reportable gifts calendar year 2007. signed,
CERTIFY that the statements have made this form and all attached schedules are true,
complete and correct the best knowledge and belief.
65. about May 2009, MENENDEZ filed Financial Disclosure Report
which certified that did not receive any reportable gifts calendar year 2008. signed,
CERTIFY that the statements have made this form and all attached schedules are true,
complete and correct the best knowledge and belief.
66. about May 16, 2011, MENENDEZ filed Financial Disclosure Report
which certified that did not receive any reportable gifts calendar year 2010. signed,
CERTIFY that the statements have made this form and all attached schedules are true,
complete and correct the best knowledge and belief.
67. about May 2012, MENENDEZ filed Financial Disclosure Report
which certified that did not receive any reportable gifts calendar year 2011. signed,
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3318
CERTIFY that the statements have made this form and all attached schedules are true,
complete and correct the best knowledge and belief.
Ill.
Official Acts
MENENDEZ Advocacy Behalf the United States Visa Applications
MELGEN Foreign Girlfriends
68.
MENENDEZ used his position United States Senator influence the visa
proceedings MELGEN foreign girlfriends.
69.
Melgen Girlfriend from Brazil
MELGEN and Girlfriend Brazilian national who worked actress, model,
and lawyer, began romantic relationship approximately 2007.
70.
Sometime 2007, MELGEN suggested that Girlfriend pursue graduate degree the United States, specifically South Florida, where MELGEN lived.
71. MELGEN urging, Girlfriend applied the LLM program the University Miami, which required her obtain student visa.
72.
MELGEN contacted MENENDEZ regarding Girlfriend student visa
application. Specifically, about July 24, 2008, the day before Girlfriend visa application
appointment Brasilia, Brazil, Staffer MENENDEZ Senior Policy Advisor, emailed the
Deputy Assistant Secretary (DAS) Visa Services, Bureau Consular Affairs, Department
State, stating the following:
The Senator asked get touch with you about the following visa applicant. helpful, can send over signed letter from the Senator with the details.
Thank you for your help with anything you can facilitate the following
application:
[Girlfriend (no relation me) has her visa application appointment Brasilia,
Brazil, tomorrow. understand she attorney Brazil and coming the
U.S. student visa with support from Dr. Solomon [sic] Melgen. Sen. Menendez
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3319
would like advocate unconditionally for Dr. Melgen and encourage careful
consideration [Girlfriend visa application.
[Girlfriend personal identifying information]
Please don hesitate contact can provide additional information and thank
you for any help you can provide.
73.
Within hours, the DAS responded Staffer saying, Thanks much. have
reached out our folks Brasilia and will back touch tomorrow.
74. about July 25, 2008, the day Girlfriend appointment, the visa was
approved, and the DAS sent email Staffer saying, The visa was approved today Brasilia.
She was perfect student visa case problems. Staffer replied, Thanks lot [DAS], the
Senator very much appreciates your help.
75.
Within minutes receiving the approval email from the DAS, Staffer emailed
MENENDEZ and Staffer say, Sir: Dr. Solomon [sic] visa applicant, [Girlfriend 1], was
APPROVED for her student visa this morning Brasilia. Should someone call Dr. Melgen?
Staffer responded, Good work! Thanks.
76.
Girlfriend completed her application the University Miami listing MELGEN the guarantor that she would have sufficient funds for tuition well living and housing
expenses. MELGEN partially funded Girlfriend tuition through The Sal Melgen Foundation, non-profit organization with the self-described purpose help[ing] with the educational needs disadvantaged persons and assist[ing] with the economic educational needs children
develeoping [sic] countires [sic] and the U.S. email arranging payment, Person sent
Girlfriend Application Information Form for funds from The Sal Melgen Foundation. the
email, Person informed Girlfriend also need you fill the attached application and send
back me, since will make the check payable from the foundation and IRS very strict.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3320
77.
Girlfriend met MENENDEZ several times while with MELGEN New York,
New Jersey, Florida, Spain, and the Dominican Republic, including MELGEN villa Casa Campo.
Before her July 25, 2008, visa interview, MELGEN introduced Girlfriend
MENENDEZ his, MELGEN girlfriend.
ii.
78.
Melgen Girlfriend from the Dominican Republic, and Her Sister
MELGEN and Girlfriend Dominican national who worked model, began romantic relationship approximately 2005.
79.
Girlfriend and her younger sister sought visit MELGEN the United States tourist visas about 2008.
80. about October 13, 2008, MELGEN sent letter the United States Embassy the Dominican Republic, stating the following:
Dear Consul, hope this letter finds you well. write reference [Girlfriend (Passport#
[REDACTED]) and [Girlfriend sister] (Passport# [REDACTED]). whom
have extended invitation visit West Palm Beach, Florida. During their
visit here the United States will cover all their expenses and assure that they
will return back Dominican Republic. appreciate your assistance this matter. you should need further information
please contact any the numbers listed below.
Sincerely,
Salomon Melgen, M.D.
81. about the same day sent the letter the Embassy, MELGEN called
MENENDEZ and asked for MENENDEZ assistance securing visas for Girlfriend and
Girlfriend sister.
82.
MENENDEZ instructed MELGEN speak with Staffer the same Senior Policy
Advisor for MENENDEZ who
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3321
83. about October 14, 2008, Person attempted call Staffer but could not
reach him and instead spoke with Staffer another MENENDEZ staffer.
Following their
conversation, Person emailed Staffer copy the letter that MELGEN had written the
Embassy. Staffer forwarded the letter Staffer explaining:
[Person from Dr. Melgan [sic] office called me. The doctor spoke with
last night about this letter sent the embassy. asked could
move the letter along. then said needed talk you. .and since you
out, they called me. Make sense? Anyhoo, the letter attached, please let
know you need anything. See you manana!
84.
Minutes later, Staffer replied:
THanks [sic], can you call [Person and find out all the detials [sic] why are
they coming, have they come before, what the status their visa
application? when did they submit their application? what have they heard
response? when they plan travel, there any reason think they would
not approved? Any problems? History should know about etc...
85.
Staffer then responded:
This the info that [Person (Melgans [sic] assistant) gave me: Sight see and tour around Palm Beach, very good friends with Melgan [sic]
pressed for more info but wouldn beyond that) They have not been the before this their first visa they have applied
for the Their status that they have appointment Nov with the embassy the where they will over the paperwork and will decided they get the
visa not [Person doesn know when they submitted their application Only response come for their appointment They hopefully plan travel around Christmas time [Person said there reason why they would denied and have history
problems
*He did mention that these people have traveled Europe and around the world
and have never had any problems with their paperwork these countries.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3322
86.
The staffers drafted letter from MENENDEZ supporting Girlfriend and her
sister visa applications. The letter was addressed the Consul General the United States
Embassy the Dominican Republic and dated October 22, 2008. read follows:
Dear [Consul General]: wanted bring your attention the pending non-immigrant visa applications
two citizens the Dominican Republic: [Girlfriend (Passport no.
[REDACTED]), and [Girlfriend sister] (Passport no. [REDACTED]).
understand they are scheduled for interviews the Embassy November
While [Girlfriend and Girlfriend sister] have traveled before Europe and
other destinations outside the Dominican Republic, this would their first trip
the U.S. They plan visit someone know well, Dr. Salomon Melgen, who
eye doctor Florida. appreciate very much your giving these applications all due consideration within
the requirements the law.
Sincerely,
Robert Menendez
United States Senator
87. about October 22, 2008, Staffer asked MENENDEZ should send the
general letter support that the staff had prepared. MENENDEZ replied, Yes. well call necessary.
88. about October 28, 2008, Girlfriend emailed MELGEN ask for copy
MENENDEZ letter support. The email read follows:
[ENGLISH TRANSLATION]
Hello love, write remind you that you need send copy what Senator Bob
Menendez office sent you, which need for the embassy.
And also remember the bank thing please.
Thank you. kiss.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3323
[Girlfriend
89. about November 2008, Person emailed Staffer inquire whether
Staffer had sent the letter support the United States Consulate the Dominican Republic,
and ask for scanned copy.
90.
The next day, about November 2008, Staffer emailed the letter support Person
91. about November 2008, the United States Embassy denied Girlfriend
and her sister applications for tourist visas. the memorandum describing the reasons for
refusal, the Embassy employee explained, Siblings, and yrs old. children. previous
travel. visit friend Florida. Neither working. solvency their own. Not fully
convinced motives for travel.
92.
That same day, about November 2008, Person alerted MENENDEZ
staff the Embassy decision, emailing Staffer the following update:
Dr. Melgen just called that there [sic] Visa was denied. tried calling you
the office, but went straight voicemail. The Doctor tells that the lady just
took quick look the papers and told them you are students and denied there
[sic] Visa. The lady was very rude them. The doctor wanted see there
something can do, since the lady obviously didn read checked [sic] any
papers.
93.
Additionally, MELGEN alerted MENENDEZ about November 2008,
forwarding him email Girlfriend had written describing details the visa interview.
MENENDEZ forwarded Girlfriend email Staffer stating, Theu [sic] were denied their
visa. would like call Ambassador tomorrow and get reconsideration possibly our contact State. Thanks.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3324
94.
Staffer replied within minutes, informing MENENDEZ,
Yes, talked his office today and are preparing follow-up letter send out the morning the consul general the DR. should get response within
couple days. Then, could follow-up with phone call need be, since
not yet clear why they were denied?
Would you rather wait for the outcome follow-up letter call the Ambo asap?
95.
Minutes later, MENENDEZ responded, Call Ambassador asap.
96. about November 2008, MELGEN sent Staffer and Staffer scanned
copies all the documents that Girlfriend and her sister gave the Embassy.
97. about November 12, 2008, the Chief the Nonimmigrant Visa Unit sent
MENENDEZ letter regarding the visa denial. The letter stated follows:
Dear Senator Menendez:
Thank you for your recent inquiry regarding the nonimmigrant visa application
[Girlfriend and [Girlfriend sister].
[Girlfriend and [Girlfriend sister] were denied visas November 2008,
under Section 14(b) the U.S. Immigration and Nationality Act. Under this law,
all applicants for nonimmigrant visas are presumed intending immigrants.
order approved for visa, applicants must satisfy the interviewing consular
officer that they are entitled the type visa for which they are applying and that
they will depart the United States the end their authorized temporary stay.
This means that before visa can issued, applicants must demonstrate strong
social, economic, and/or family ties outside the United States.
Unfortunately during their interview, [Girlfriend and [Girlfriend sister] were
unable overcome the presumption the law. have reviewed the applications
and the interviewing officer notes, addition the information received from
you, and must agree with the decision the interviewing officer the case.
Any applicant found ineligible under Section 14(b) may schedule appointment
for new interview. During the interview, the applicants will given another
opportunity demonstrate their qualifications for visas. hope this information has been helpful you and your constituent.
Sincerely,
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3325
Chief, Nonimmigrant Visa Unit
98. about November 13, 2008, Staffer emailed MELGEN, Melgen:
forwarded the information you send [sic] the Embassy the Monday this week.
haven heard back but will let you know when do. Let stay touch.
99.
Person followed with MENENDEZ staff, emailing Staffer about
November 21, 2008, ask they had heard anything from the Embassy Dominican Republic why the visas were denied. Staffer replied, right now, have not heard anything. will let you know soon get some news.
100. about November 24, 2008, Staffer emailed MELGEN and Person say,
State notified today that the visa applicants the have been called back for 2nd
interview.
101.
Person responded, Thanks for the email. Dr. Melgen asks you want them
contact certain person someone from the embassy will contact them, since they haven done yet. Please let know can tell the Doctor. also would like thank you for all your
help.
102,
Staffer replied, The latter, they don hear from the Embassy week, let
103.
Girlfriend and her sister were re-interviewed about December 2008.
know.
the conclusion the interview, Girlfriend and her sister were informed that their visa
applications were approved.
104. about December 10, 2008, Staffer sent email from his personal account Staffer personal account with the subject line people from the who wanted visas
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3326
visit Dr. Melgem [sic] GOT THEM. Staffer wrote, view, this ONLY DUE the fact
that intervened. told RM.
105.
MENENDEZ first met Girlfriend the Dominican Republic prior when she
received her visa about 2008, when MELGEN, Girlfriend and MENENDEZ stayed
together MELGEN home Casa Campo.
iii.
106.
MELGEN Girlfriend from Ukraine
Girlfriend Ukrainian national who worked model and actress, was another
woman with whom MELGEN had romantic relationship.
107. about 2006 2007. MELGEN invited Girlfriend who was residing Spain the time, visit him Miami, Florida. Girlfriend needed tourist visa order so.
108.
Sometime about 2007, MELGEN sought MENENDEZ assistance
obtaining Girlfriend visa. about February 13, 2007, Staffer MENENDEZ Chief
Staff the time, wrote email Staffer MENENDEZ staffer, asking her, did send dr.
Melgen letter? Staffer responded: assuming your [sic] referring issue discussed with RM? asked work issue Ukrainian visa for woman Spain related Dr. Melgen. passed all the information [Staffer MENENDEZ staffer]
and she knew was personal request. She has followed it.
109. about February 15, 2007, Staffer sent email Staffer stating, This
will the new version the letter. However, still missing the new interview date. This you can have idea what the letter will say
The drafl the letter read follows:
Dear Consul General: writing behalf Salomon Melgen, who has contacted district office
reference non-immigrant visa for his friend, [Girlfriend (DOB:
[REDACTED]).
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3327
According Dr. Melgen, has extended invitation his good friend
[Girlfriend undergo medical evaluation for plastic surgery well visit
with him within the U.S. Upon receiving the invitation, [Girlfriend had
contacted the U.S. Embassy Madrid (Spain) and subsequently, she was scheduled
for non-immigrant visa interview for February 12, 2007. Unfortunately,
[Girlfriend had reschedule the interview. Dr., [sic] Melgen states that
[Girlfriend has intentions abandoning her residency abroad due the fact
that she has such strong ties Spain. Furthermore, [Girlfriend enrolled the
University Blanca ford Barcelona, Spain and she also the broadcast image
for channel Tele Spana and thus, famous person Spain. Thus, Dr. Melgen
assures that [Girlfriend granted non-immigrant visa, she will remain the
U.S. only for the time allotted the visa and will return her home abroad before
the non-immigrant visa expires. Dr., [sic] Melgen will assume all financial
responsibilities during her stay the United States. Therefore, Dr. Melgen
respectfully requests that his good friend, [Girlfriend 3], granted nonimmigrant visa that she may able travel the U.S. obtain medical
evaluation and visit with him.
Dr. Melgen person the highest caliber. fine citizen and held high
esteem his peers. this time heightened security, can appreciate the gravity your task. Fastidious review visa appointments vital the future this
great nation. Therefore, there anything office Dr. Melgen can
assist you making prompt and fair decision grant [Girlfriend visa
petition, please inform office your earliest convenience. view these circumstances, respectfully request that your good office review
this matter and kindly consider granting the non-immigrant visa with guidance from
the Immigration and Nationality Act.
Thank you for your cooperation. Please feel free contact Newark office
can assistance you contact Director Immigration Services, [Staffer
7], [REDACTED] should you have additional questions.
Sincerely,
Robert Menendez
United States Senator
110.
Girlfriend was granted visa about February 22, 2007.
111.
After receiving her visa, Girlfriend traveled Florida. While there, she stayed apartment that MELGEN owned Palm Beach. She visited Miami, where she joined
MELGEN and MENENDEZ for dinner Azul, restaurant the Mandarin Hotel. MELGEN
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3328
MENENDEZ Efforts Advance MELGEN Interests Foreign
Contract Dispute
112. about 2006, MELGEN purchased option buy 50-percent share
company called ICSSI, SA, which exercised about 2011. ICSSI was company that had
entered into contract with the Dominican Republic about July 18, 2002. Under the contract,
ICSSI acquired the exclusive rights install and operate X-ray imaging equipment Dominican
ports for years. The contract required all shipping containers entering Dominican ports X-rayed tariff $90 per container, which made this contract worth potentially
many millions dollars. Soon after the contract was executed, ICSSI and the Dominican Republic
began litigating its legitimacy and legality.
113. about 2011, MELGEN established American company, Boarder Support
Services, LLC (also known Border Support Services) holding company for the contract.
114. about February 2012, MELGEN acquired the remaining percent ICSSI,
thereby obtaining exclusive ownership and control any enforceable rights under the contract.
115.
MENENDEZ Meeting with the Assistant Secretary State for INL Advance MELGEN Interests his Contract Dispute with the
Dominican Republic about May 16, 2012, MENENDEZ advocated for MELGEN interests his
Dominican contract dispute meeting with the Assistant Secretary State for the Bureau
International Narcotics and Law Enforcement Affairs (INL).
116.
Prior this meeting, about March 12, 2012, Person friend MELGEN
who was former MENENDEZ staffer, contacted the U.S. Department State request phone
call with the Assistant Secretary State for LNL.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3329
117. about March 13, 2012, State aide the Assistant Secretary, called
Person the Assistant Secretary behalf. That same day, State emailed the Assistant
Secretary the following note:
Sir: called back [Person C]. said the current scanners are inadequate and the
port security deteriorating quickly. The customs director highly corrupt.
proposes going after visas for colTuption purposes, which would have cultural
impact and send message the president. agreed discuss with him when back town. However, says still wants talk you briefly about this.
Person doesn currently represent anyone involved this contract dispute over
scanners but will soon join the board Border Security Services. And,
dropped the name Sen. Menendez pretty squarely having interest this
case.
118.
After State call with Person about March early April 2012, the
Assistant Secretary met with Person who represented the Assistant Secretary that was
there speak behalf United States entity involved contract dispute with the
Government the Dominican Republic concerning the screening shipping containers
Dominican ports. Person asked the Assistant Secretary incorporate this contract into larger
law enforcement conversations with the Dominican government, arguing that the contract would
help INL meet drug interdiction and port security objectives the region. Person referenced
New Jersey connections the issue.
119. about April 2012, Person emailed the Assistant Secretary regarding the
ICSSI issue. that email, Person stated, Below, along with three brief attachments, have
tried succinctly summarize the issues hand the matter the port security contract and
ask that you consider taking appropriate actions this serious matter.
120.
MENENDEZ was the Dominican Republic from about April
about April 11, 2012, and MELGEN was the Dominican Republic from about April about April 10, 2012.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3330
121. about May 10, Staffer MENENDEZ Senior Policy Advisor.
reached out State staffer the Assistant Secretary, arrange meeting between
MENENDEZ and the Assistant Secretary. That same day, MELGEN promised Staffer that
would send the $60,000 that Staffer requested the April 30, 2012, email, set forth
paragraphs and 50. Staffer and State exchanged the following emails:
12:22 p.m. (Staffer State
[State
Just saw Menendez and would like see [the Assistant Secretary) next week
talk about (cargo from coming into ports) and [REDACTED]. put the request through [the Office Legislative Affairs the State
Department], but wanted give you heads up.
[Staffer
12:24 p.m. (State Staffer
Cool, thanks for the heads long lost friend!! been waiting anxiously
for you pop up! The second piece get can you help with the first
Any
more specificity?
Hope see you next week!
[State
12:27 p.m. (Staffer State
Hah! [REDACTED]. had drag even this information out him. was just the for personal visit and imagine has some observations share, but continues have concerns about what flowing through the ports either
unobserved with tacit permission.
12:29 p.m. (State Staffer
Roger that. know [the Assistant Secretary] will happy opine and helpful
however can that said, might the case that WHA [(the Bureau Western
Hemisphere Affairs the Department State)] the true angle will want
pursue the point.
But since [the Assistant Secretary] can chat
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3331 the room best the good Senator from New Jersey doesn mention the
prior private meeting they had
[State
12:32 p.m. (Staffer State
Understood. think would behoove [the Assistant Secretary] have some talkers any new initiatives, particularly the ports.
122.
The meeting between the Assistant Secretary and MENENDEZ occurred
about May 16, 2012, the same day that MELGEN and his family gave $40,000 the New Jersey
Democratic State Committee Victory Federal Account and $20,000 MENENDEZ legal
defense fund, set forth paragraphs and 50. During the meeting, MENENDEZ
questioned the Assistant Secretary about the contract dispute between MELGEN and the
Dominican Republic. MENENDEZ expressed dissatisfaction with INL lack initiative
enforcement the contract.
123.
That same day, the Assistant Secretary sent the following email his staffers
describing the meeting: port issue. [State will remember the Senator raised several months ago the
issue company attempting sell tracking and security system the
port authority, and suggesting they were being blocked corrupt officials. This what was alluding today. recall correctly, our investigation last time
suggested this was more commercial dispute than law enforcement issue. told
the Senator were working some sort port initiative, once had concrete
initiative would see could leverage correct GODR decision the port
contract, and would let him know how this developed. said wanted hear solution July not, would call hearing discuss it.
124. about June 14, 2012, Staffer emailed State Can talk DR? Anything share based [MENENDEZ and the Assistant Secretary last conversation?
125.
Approximately two hours later, State replied Staffer working
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3332
important him, right? are unfortunately not the lead been working the phones hard get info from the embassy.
126. about June 15, 2012, the Assistant Secretary received email from Person attaching copy letter that MELGEN sent Dominican government officials urging that
they enforce the contract.
127.
Three days later, about June 18, 2012, the Assistant Secretary forwarded the
email and attachment his staff with the following message:
FYI
This the case about which Sen. Menendez threatened call testify
open hearing. suspect that was bluff, but very much interested its
resolution. reminder that owe the Senator answer the question What can resolve this matter?
128.
That same day, State responded the Assistant Secretary email: chatted with the Senator staff Thursday effort temper expectations
and indicate that working gather any info that can pass along.
This most certainly still their minds. The response will most appropriately
come from phone call from you the Senator, ideally soon tomorrow.
not tomorrow, the last opportunity before the Senator deadline will directly
after your return from Peru. Absent real warm and fuzzy answer, better
reach out sooner than later.
129. about June 20, 2012, Person sent the Assistant Secretary another email
regarding the ICSSI situation, with the subject ICCSI [sic]-Border Security Solutions
documents. The Assistant Secretary forwarded his staff that same day with the message,
More Menendez favorite port contract case.
ii.
130.
MENENDEZ Attempt Stop CBP from Donating Cargo Screening
Equipment the Dominican Republic about January 11, 2013, MENENDEZ called Staffer his Chief Counsel,
and asked her contact CBP stop them from donating shipping container monitoring and
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3333
surveillance equipment the Dominican Republic donation that would hurt MELGEN
financial interests the contract had provide exclusive cargo screening Dominican ports.
131.
Shortly after the call, 1:56 p.m., Staffer sent email CBP CBP entitled
Customs equipment Dom Republic. The email said the following:
Dear [CBP 1], boss asked call you about this. Dominican officials called him stating
that there private company that has contract with DHS provide container
shipment scanning/monitoring the DR. Apparently, there some effort
individuals who not want increase security the hold that contract
fulfillment. These elements (possibly criminal) want CBP give the government
equipment because they believe the government use the equipment will less
effective than the outside contractor. boss concerned that the CBP equipment
will used for this ulterior purpose and asked that you please consider holding off the delivery any such equipment until you can discuss this matter with ushe like briefing. Could you please advise whether there shipment
customs surveillance equipment about take place?
Thanks. number [REDACTED.]
132. 2:41 p.m., CBP responded, need look into the matter. adding [CBP
2], whose team can assist running this down. get back you ASAP.
133. 2:48 p.m., MENENDEZ sent email Staffer with the subject, Any info?
134. 3:01 p.m., Staffer replied CBP and CBP Thanks, boss considers
very urgent would love any update the end the day. cell [REDACTED.] Thanks!
135. 4:04 p.m., CBP replied Staffer with the following information:
Ijust spoke with our Office Field Operations. The contract that you are referring for additional equipment between the Government the Dominican Republic
and private company. CBP has not been part this contract, CBP present one port the Dominican Republic, Port Caucedo, and the equipment that
being used there was donated CBP when the operations started 2006. CBP
has not agreed any expanded operations the Dominican Republic and has not
provided any additional equipment.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3334
136. 4:13 p.m., Staffer notified MENENDEZ,
This their response:
The contract that you are referring for additional equipment between the
Government the Dominican Republic and private company. CBP has not been part this contract, CBP present one port the Dominican Republic,
Port Caucedo, and the equipment that being used there was donated CBP
when the operations started 2006. CBP has not agreed any expanded
operations the Dominican Republic and has not provided any additional
equipment.
137. 4:18 p.m., MENENDEZ replied Staffer What the name the private
company?
138. 4:39 p.m., Staffer replied CBP Thanks very much- sounds like our
information was incorrect. What the name the private company sure are discussing
the same thing? Thanks[.]
139. 4:41 p.m., CBP replied, The company called ICCSI [sic].
140. 9:46 p.m., Staffer replied MENENDEZ, The company called ICSSI.
141.
This series emails occurred one day after MENENDEZ, MELGEN, and Person golfed together the private Banyan Golf Club West Palm Beach, Florida, where MELGEN
paid for the greens fees, referenced paragraph 43. After the round golf, Person paid
$356.80 for meal the Raindancer Steak House West Palm Beach, also referenced
paragraph 43.
MENENDEZ Advocacy Behalf MELGEN Medicare Billing
Dispute Worth Approximately $8.9 Million
142.
For several years, MENENDEZ, personally and through his aides, advocated for
MELGEN interests Medicare billing dispute MELGEN had with CMS and HHS involving
millions dollars.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3335
143.
MELGEN health care dispute arose about July 2008, when the Zone
Program Integrity Contractor (ZPIC) for CMS began investigate MELGEN billing practices
for drug called Lucentis. Lucentis injectable drug that stored single-use vials
preservative-free solution. Although the Lucentis vials contain excess solution, called overfill,
case spillage, the Food and Drug Administration (FDA) has only approved the use one dose
per vial, which means that each vial should only used for single eye single patient. The
Centers for Disease Control and Prevention (CDC) has also issued guidelines warning that reusing single-use vial, harvesting the preservative-free solution treat more than one patient, spreads
the risk infection. The manufacturing label for Lucentis also instructs that each vial should
used for the treatment single eye. Although the FDA, CDC, and manufacturing label caution
against harvesting Lucentis, MELGEN did so, using overfill from the single-dose vials treat three patients.
Then, through his company, VRC, MELGEN sought and obtained
reimbursement from CMS for the full cost single vial Lucentis for each dose
administered, even though had not incurred the expense purchasing new vial for each dose. other words, MELGEN billed CMS for multiple vials Lucentis that never actually used
and for which never incurred any cost.
144. about July 2008, the ZPIC requested patient records from MELGEN practice connection with the administration Lucentis for patients treated from about February
2007, through about December 21, 2007.
145. about January 2009, the ZPIC requested patient records from MELGEN
practice connection with the administration Lucentis for patients treated from about
January 2008, through about December 23, 2008.
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146.
MENENDEZ Directs His Staff Assist MELGEN His Medicare
Billing Dispute about June 12, 2009, after MELGEN learned that audit his Medicare
billing was likely result multi-million dollar overpayment finding, MENENDEZ emailed
Staffer 10, his Legislative Assistant handling health care issues. The email subject line was
melgen. the email, MENENDEZ instructed Staffer [p]lease call him asap
[REDACTED] Medicare problem need help him with.
147.
Staffer replied that evening that she and Staffer 11, MENENDEZ Deputy
Chief Staff, had called MELGEN twice that day and were looking into how [they could]
helpful.
148. about June 19, 2009, Staffer emailed MENENDEZ inform him that she
and Staffer had had conference call with MELGEN which asked [Staffer and Staffer
101 weigh with CMS, but that MELGEN attorneys had told them wait for strategic
reasons.
149.
The next day, about June 20, 2009, Person sent Staffer email entitled
Dr. Melgen. Person copied Lobbyist MELGEN lobbyist and lawyer, the email, sharing
with Staffer some points that Dr. Melgen wanted [Person provide support
MELGEN position his Medicare billing dispute with CMS. the email, Person also said
that MELGEN wants see [Staffer and [Lobbyist could meet early this week speak. wants everyone know the facts and the same page.
150.
That same day, about June 20, 2009, Staffer responded, Thank you. Yes,
setting call early next week would great. What day and time works [sic] best?
151.
Approximately three minutes later, Person forwarded Staffer response
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152. about June 21, 2009, MELGEN emailed Staffer 10, copying MENENDEZ,
with more information about MELGEN specific case that she would better understand the
facts.
153.
Over the next few days, MELGEN requested more calls with Staffer 10, and
Lobbyist sent more information about the status MELGEN dispute her.
154. about June 30, 2009, the ZPIC formally notified MELGEN that had
conducted post-payment review claims and concluded that Medicare had overpaid MELGEN claims submitted, through VRC, for Lucentis. The ZPIC informed MELGEN that had
preliminarily determined that his practice owed approximately $8,981,514.42.
155.
Beginning about July 2009, MENENDEZ staff reached out CMS
advocate for MELGEN. address MELGEN pressing concern, Staffer inquired
whether CMS administrative contractor would issuing new policy that would affect the
future coverage Lucentis Florida.
156. about July 10, 2009, HHS the then-Deputy Assistant Secretary for
Legislation HHS, emailed Staffer notify her that CMS has confirmed that [the contractor]
has not issued, nor does plan issue, revision its local coverage determination for Lucentis.
157.
Staffer forwarded that email Staffer 11, who responded, Yeah, but what are
they talking about being the works... decision Melgen specifically? think have
weigh his behalf. .to say they can make him pay retroactively.
158.
That same day, Staffer sent MENENDEZ the following email, with the subject
line, Update Dr. Melgen and CMS understand that Dr. Melgen might calling you this afternoon wanted let
you know where things stand. [Staffer 11] and have spoken Dr. Melgen every
few days update him the situation. have reached out good contact
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3338
out what going on. They are hoping get back the end the day with
additional information that can best advise you about how proceed for your
involvement. Also, just fyi, received email from Dr. Melgen yesterday
sharing letter sent the lead investigator his case that summarizes his
situation well and asked him could share that with HHS further explain
his situation.
While Staffer was communicating with CMS officials, she continued receive
159.
case-specific information from MELGEN lobbyists/lawyers.
ii.
160.
MENENDEZ Advocates Behalf Melgen the Director and
Acting Principal Deputy CMS about July 22, 2009, Staffer emailed MENENDEZ inform him,
you know been working the Melgen case everyday and just this morning got update
from his lawyer that expect response made public this week. Staffer requested
breakfast meeting with MENENDEZ update him, which would precede find[ing] time for
[MENENDEZ] call the Sec that day.
161.
That same day, Lobbyist emailed MELGEN, copying Staffer and Staffer 11, inform them that had received document regarding Lucentis that CMS proposed publish
that week.
Lobbyist complained that there was legal basis for the contents the
document which were adverse MELGEN interests and wrote, forwarding this
Senator Menendez office. Clearly, there way stop publication, need
immediately.
162.
Later that day, Staffer thanked him for the update and informed him that she was
working schedule time for the Senator call the Secretary today, thanks for the update.
163. the meantime, Staffer arranged phone call with CMS officials that day
which she insisted that the CMS regulations regarding Lucentis were unclear, and that there existed
conflicting information that supported MELGEN position his financial dispute.
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164. this point, MENENDEZ sought speak high-level official advance
MELGEN position. HHS determined that the proper person speak with MENENDEZ was
HHS the Director and Acting Principal Deputy CMS. arranging this conversation, HHS
sent HHS the following email:
Hi, [HHS 2]. Just tried call you but understand you are Baltimore today.
have bit situation with Senator Menendez, who advocating behalf
physician friend his Florida. The bottom line that wants talk
someone today talked his office out the Secretary, but therefore through [sic]
you under the bus. Would you able speak with Senator Menendez some time
today? Can give you call this a.m. give you some background discussions
thus far?.
Many thanks and sorry!
165.
The call between MENENDEZ and HHS occurred about July 27, 2009.
prepare MENENDEZ for this call, Staffer prepared Talking Points memorandum, which
began, was contacted Dr. Melgen regarding audit First Coast, the Medicare
administrative contractor Florida. The opening section continued, understand that you are
familiar with his situation and Lucentis but let through his concerns, and then outlined
MELGEN arguments for why should not have pay the approximately $8.9 million CMS.
The opening section ended, not weighing how you should administer Lucentis, nor
how his specific audit should resolved but rather asking you consider the confusing and
unclear policy this issue and not punish him retroactively result.
166.
While Staffer was preparing the Talking Points memorandum for
MENENDEZ, Lobbyist another one MELGEN lobbyists/lawyers, emailed Staffer
arguments that MELGEN wanted emphasize support his position. Staffer forwarded
the email Staffer and asked her incorporate the arguments into the memorandum for
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3340
MENENDEZ. Staffer did so, including sections the memorandum entitled arguments
received from [Lobbyist and Dr. Melgen also asked that you have these points.
167.
During the call about July 27, 2009, between HHS and MENENDEZ.
MENENDEZ asserted that CMS policy guidelines regarding single-use vials were vague and
that doctor Florida was being treated unfairly result. HHS responded that had
reviewed the bills and spoken the contractors, and that they should allow the case take its
course. HHS reminded MENENDEZ that the doctor had due process and appellate rights.
MENENDEZ told HHS not tell him (MENENDEZ) about MELGEN appellate rights and
abruptly ended the call.
168. about July 31, 2009, Person sent Staffer lOan email entitled Dr. Melgen
Call. it, Person informed Staffer 10, Dr. Melgen available now. you can call him
again [REDACTED.] waiting for your call.
169.
Later that day, Staffer sent Staffer email with the subject line, talking melgen, writing that upset.
iii.
170,
MENENDEZ Attempts Speak the Secretary illS Advocate MELGEN Behalf After MELGEN Receives Unfavorable Rulings His Medicare Billing Dispute about August 2009, the Medicare Administrative Contractor (MAC-i)
adopted the ZPIC finding and issued revised Overpayment Demand MELGEN the amount approximately $8,982,706.98.
171.
One week later, about August 12, 2009, MENENDEZ emailed Staffer Dr.
Melgen still the nonlitigant stage, should determine who has the best juice CMS and
Dept Health.
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172. about August 13, 2009, Lobbyist emailed Staffer and Staffer
inform them that Dr. Melgen received the overpayment demand letter from First Coast, which stated was sent prematurely because MELGEN was preparing appeal the underlying decision.
Staffer forwarded the email MENENDEZ the next day, asking, you want ask our
CMS leg affairs contact look into this? MENENDEZ replied, Yes want contact
them this issue.
173. about August 20, 2009, Staffer emailed HHS and copied Staffer 11,
requesting call regarding MELGEN issue regarding repayment demand letters from several
Medicare supplemental insurers.
174. about August 21, 2009, MELGEN filed Request for Redetermination with
the MAC-i.
175.
Between about September 2009 and January 2010, MELGEN team
continued update MENENDEZ staff regarding the status MELGEN dispute.
176. about October 13, 2009, the MAC-i issued denial MELGEN Request
for Redetermination. After the MAC-i issued this denial, about November 25, 2009, Person sent email Staffer with the subject, Dr. Melgen, that included attachment entitled,
Medicare Second Appeal. the email, Person said, part, Dr. Melgen asked forward
the attached QIC Appeal.
177. about January 29, 2010, the Qualified Independent Contractor (QIC) affirmed
the Overpayment Determination against MELGEN the amount approximately $8.9 million.
After the QIC issued its decision, about March 30, 2010, MELGEN requested hearing
before Administrative Law Judge.
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178. about August 2010, Staffer emailed HHS HHS staffer, with the
following request: boss would like try and set call with [the] Secretary [of HHS] (not clear the topic this point will try and find out). Could you connect her
scheduler whomever you think best can arrange time?
179.
That same day, HHS put Staffer touch with HHS the Deputy Director for
Scheduling and Advance for the Secretary HHS, but specified that HHS do[es] need know
what [MENENDEZ agenda.
180. about August 2010, HHS entered the email exchange, again asking for
any background the topic for the call.
181.
That same day, Staffer 12, MENENDEZ scheduler, emailed HHS that
MENENDEZ wants try and speak with the Secretary soon possible, listing potential
available times for that evening and the following day. response the HIEIS requests for the
topic the call, she wrote, Unfortunately boss didn share with the topic just that
really wished speak with the Secretary soon possible.
182.
Also that same day, HHS suggested that the call occur 1:15 p.m. August
2010, but Staffer stated that MENENDEZ would flight that time and therefore unable take call. fact, the flight MENENDEZ took that day was MELGEN private jet from
West Palm Beach, Florida, MELGEN villa Casa Campo.
iv.
183.
MENENDEZ Arranges for MELGEN Lobby the Chair the Senate
HELP Committee Regarding His Medicare Billing Dispute about May 2011, MENENDEZ arranged for MELGEN meet with Senator Chair the Senate Health, Education, Labor, and Pensions (HELP) Committee, that
MELGEN could personally solicit Senator assistance with his Medicare billing dispute.
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184.
MENENDEZ first spoke Senator about MELGEN directly, and then,
about May 2011, Staffer emailed Senator Chief Staff, requesting meeting between
Senator and MELGEN, The email noted that [t]he doctor Senator Menendez spoke [Senator about Dr. Sal Melgen, and stated that CMS pursuing Dr. Melgen for matter around
dosing procedures and relevant charges Medicare.
185. about May 16, 2011, the Health Policy Director for the Senate HELP
Committee reached out MENENDEZ office for more information, and Staffer and Staffer arranged speak her about MELGEN Medicare billing dispute.
186.
The meeting that MENENDEZ arranged between MELGEN and Senator took
place about May 18, 2011, MENENDEZ introduced MELGEN Senator the beginning the meeting and remained while MELGEN solicited Senator assistance.
187. about June 24, 2011, MELGEN forwarded MENENDEZ memorandum had received from Lobbyist his lobbyist/lawyer, which memorialized conversation between staffer for Senator and CMS that was unfavorable MELGEN. the email, MELGEN said MENENDEZ. These people are unbelievable. Again, they continue lie.
188.
After MELGEN Receives More Unfavorable Rulings, MENENDEZ
Enlists the Office the Senate Majority Leader Assist MELGEN
His Medicare Billing Dispute about June 13, 2011, the Administrative Law Judge issued decision
affirming the decision the QIC.
189. about August 14, 2011, MELGEN filed appeal before the Medicare
Appeals Council (MAC-2).
190. about September 19, 2011, MELGEN forwarded MENENDEZ email
from Lobbyist entitled Secretary Authority. Among other things, the email said the following:
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3344
[I]f the MAC[-2] were contacted CMS and advised that CMS believed that the
position the provider were correct, would eliminate the dispute and the MAC
would dismiss the appeal. Naturally, that case, First Coast would directed
CMS make payment you. Since CMS subject the Secretary oversight, contact believed that the Secretary could direct CMS drop its opposition and
notify the MAC that agreed with the position the provider.
Overall, this makes sense, because you consider the fact that the MAC ruled
against us, and went court, would suing the Secretary the head
HHS that means that the Secretary would making the decision the
litigation.
Given these facts, seems that the best approach the Secretary not
ask for the Secretary direct the MAC find your favor, but ask the Secretary direct CMS reverse its position and notify the MAC that agrees with you.
191. least early about March 2012, Staffer 13, Staffer replacement
MENENDEZ Legislative Assistant charge health care matters, worked with MELGEN
lobbying/legal team provide information the Senior Health Counsel for Senator the Senate
Majority Leader, regarding MELGEN Medicare billing dispute.
192. about April 2012, Staffer sent the following email, entitled Melgan
[sic], Staffer
Can you circle back with Dr. Melgan [sic] attorney find out specifically what
they asking for? just heard from [the Senior Health Counsel for Senator 3],
who needs know because CMS asking. know they changed from their
original ask, need know what they seeking now.
193.
That same day, Staffer responded, Will do. Thanks.
194.
Staffer arranged for MELGEN lobbying/legal team meet about May 2012, with the Senior Health Counsel for Senator
195. about May 22, 2012, Person sent MENENDEZ email entitled Email
[Lobbyist that contained the email address for Lobbyist
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vi.
196.
MENENDEZ Advocates MELGEN Behalf the Acting
Administrator CMS
Approximately six days after MELGEN issued $300,000 check from VRC
Majority PAC, earmarked for New Jersey, MENENDEZ advocated behalf MELGEN
position his Medicare billing dispute the Acting Administrator CMS.
197. about June 5,2012, MENENDEZ and his staff met with Lobbyist ito prepare
MENENDEZ advocate MELGEN behalf the Acting Administrator CMS.
198. about June 2012. MENENDEZ met with the Acting Administrator CMS
and raised the issue the core MELGEN Medicare billing dispute.
Specifically,
MENENDEZ pressed the Acting Administrator CMS about multi-dosing and Medicare
payments, and advocated behalf the position favorable MELGEN his Medicare billing
dispute.
199. about June 12, 2012, Lobbyist sent Staffer memorandum entitled
Talking Points: CMS Policy for MENENDEZ use during future advocacy with the Acting
Administrator CMS. Approximately two weeks later, after Lobbyist asked Staffer there
had been any follow with respect the conversation with [the Acting Administrator CMS],
Staffer emailed Lobbyist the following:
[Lobbyist 1]:
The Senator scheduled receive call from [the Acting Administrator CMS]
mid-morning this coming Tuesday. shared you [sic] your memo with [Staffer
13] that contains arguments use response [sic] [the Acting Administrator
CMS] should she try make the case that other agencies have policies place that
prohibit multi-dosing.
[Staffer 13] preparing memo for the Senator that covers your points for the first
meeting, review the conversation the first meeting, and your most recent
memo with proposed counter-arguments.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3346 out next week but the Senator may want call prep for his Tuesday
call with [the Acting Administrator CMS]. Should this the case, will you
around Monday afternoon Tuesday morning.
Thanks.
[Staffer
200. about June 30, 2012, Staffer prepared the memorandum MENENDEZ
described Staffer email the preceding paragraph, and sent Lobbyist for his review.
That memorandum notes that [tjhe subject the call [with the Acting Administrator CMS] discuss the issue [of] Medicare reimbursement when physician multi-doses from single-dose
vial. The memorandum also includes one four Talking Points for the Call the following
argument: The CDC guidelines, while necessary ensure patient safety and reduce the number healthcare-associated infections, has bearing Medicare reimbursement policy[.] Another
talking point notes that [wje talking about payments made 2007-2008, the years which
MELGEN was found have received approximately $8.9 million Medicare overpayments. The
final talking point argues the following: clear that CMS taking steps clarify both multidosing from single-dose vials and overfills going forward. This is, effect, admitting that these
policies didn exist before and don apply during the 2007-2008 period. Therefore they don
have any bearing the issue hand.
201.
Lobbyist reviewed the memorandum and sent his edits Staffer about
July 2012.
202.
The follow-up call between MENENDEZ and the Acting Administrator CMS
occurred about July 2012.
During the call, the Acting Administrator CMS told
MENENDEZ that CMS would not alter its position regarding billing for vials used for multiple
patients. The Acting Administrator ofGMS also explained that CMS enforcement Medicare
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3347
billing followed the CDC guidelines, which warn that reusing single-use vial, harvesting the
preservative-free solution treat more than one patient, increases the risk infection.
response, MENENDEZ expressed dissatisfaction with the Acting Administrator CMS
answers and stated that would speak directly with the Secretary HHS about the matter.
203. about July 2012, Lobbyist emailed Staffer and Staffer 13, eager learn how the call went today
204.
please advise. about July 2012, Staffer responded Lobbyist [G]ive call
tomorrow afternoon and fill you in.
205. about July 2012, MENENDEZ emailed Staffer 13, Followup [sic] yield
anything value? Staffer responded summarizing follow-up conversation had with
CMS regarding multi-dosing and whether overfill could considered Medicare payments,
while noting that he, Staffer 13, spoke with Lobbyist after the call. Specifically, Staffer noted
that Lobbyist encouraged, but mainly because increasingly confident they won have
leg stand should litigate. But all hopeful won come that.
206. about July 16, 2012, Lobbyist responded email sent Staffer with subject line that read, part, CDC report emphasizes importance adhering single
dose/single use vial protocols. Lobbyist added Staffer the email, which Lobbyist said,
[L]et know you hear back from [the Acting Administrator CMS office some point have make decision whether recommend the doctor court rather than wait any
longer. did not want take any action until knew that other avenues were shut down.
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vii.
207.
MENENDEZ Elevates His Advocacy MELGEN Behalf the
Secretary illS about July 10. 2012, Senator scheduler contacted HHS, stating that
[Senator would like have meeting with [the Secretary HHS] and Senator Menendez
sometime the next couple weeks.
208. about July 13, 2012, Staffer emailed MENENDEZ asking whether he,
MENENDEZ. had informed IVELGEN that Senator was organizing meeting with the Secretary HHS. MENENDEZ responded, Haven told Melgen yet. Prefer know when
meeting her that don raise expectation just case falls apart.
209. about July 19, 2012, Person forwarded MENENDEZ email
MELGEN received from Lobbyist entitled CMS recent justification for denial payment.
The email from Lobbyist contained summary the latest information provided CMS
connection with its denial reimbursement and subsequent recoupment connection with claims
submitted that reflected the multi-dosing Lucentis. for the years 2007
2008. his email
MENENDEZ, Person wrote, Dr. Melgen had mistakenly sent you the draft version earlier that
was not complete. Below please find the final version.
210. about July 20, 2012, Person forwarded Staffer the same email from
Lobbyist described the preceding paragraph. his email Staffer Person
vvTote,
Dr.
Melgen had asked forward you the email below.
211.
Also that same date. HHS the Secretary HHS scheduler, ernailed Senator scheduler suggest dates and times for the Secretary HHSs meeting with MENENDEZ
and Senator
212. about July 24, 2012, Person sent email MENENDEZ entitled Dr.
Me4gen wiTh
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3349
the email MENENDEZ, Person wrote, Attached please find the proposed letter that was sent [Staffer [Lobbyist ij. Dr. Melgen wanted send you well. The draft letter
submitted MELGEN lobbyist/lawyer does not mention MELGEN name, but advocates
behalf his position and twice references the Medicare contractor Florida.
213,
MENENDEZ meeting with the Secretary HHS occurred about August
2012. about August MENENDEZ spoke Lobbyist MELGEN lobbyist/lawyer,
prepare for the meeting.
214.
During MENENDEZ meeting with the Secretary FIRS, MENENDEZ
advocated behalf MELGEN position his Medicare billing dispute, focusing
MELGEN specific case and asserting that MELGEN was being treated unfairly. The Secretary RHS disagreed with MENENDEZ position, explaining that CMS was not going pay for the
same vial medicine twice, and emphasizing that CDC guidelines expressly advised against
multiple applications from the same vial prevent potential contamination. The Secretary
RHS also informed MENENDEZ that because MELGEN case was the administrative appeals
process, she had power influence it.
215.
After MENENDEZ advocated behalf MELGEN directly the Secretary
RRS, Lobbyist emailed Staffer and Staffer 13, saying, have spoken with [the] doctor and
understand that the meeting with the Secretary was quite lively. Lobbyist then asked for
further briefing.
216. about September 12, 2012, Lobbyist emailed Staffer asking had
heard back from [the Secretary RRS office following the meeting last month. Staffer
forwarded the email Staffer asking what should tell Lobbyist
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3350
217. about September 13, 2012, Staffer replied Staffer 13, think you should
try get some feedback without raising attention.
218. about September 19, 2012, Staffer reached out email HHS
Assistant Secretary HHS, see there might any news from your end the meeting our
boss [sic] had right before recess. HHS did not respond.
viii.
219.
MELGEN Gives $375,000 Entities Supporting MENENDEZ
Reelection Efforts Renew MENENDEZ Advocacy the Secretary HHS Support MELGEN Medicare Billing Dispute about October 19, 2012, one week after MELGEN, through his company,
VRC, issued $300,000 check Majority PAC, earmarked for New Jersey, and three $25,000
checks New Jersey Democratic County Committees, MELGEN sent MENENDEZ email
with the subject MAC Appeal. The email stated, Here the latest memo with the most recent
developments, and included attachment entitled MAC Appeal Update and Recent
Developments 10-1-2012. The memorandum was authored MELGEN lobbyists/lawyers
and addressed MELGEN. The four-page memorandum entitled Status Medicare Audit
and Appeal, and opens with the following introduction: You have asked for brief summary
the current status the pending Medicare Overpayment Determination appeal for Vitreo Retinal
Consultants (the Practice You have also asked provide update recent developments other litigation matters relating drug product overfill. The memorandum concludes with
section entitled The Secretary Authority, asserting that [i]t would appropriate for the
Secretary the Department Health and Human Services intervene during the pendency
the Practice appeal before the MAC clarify that, the period prior January 2011, CMS
policy permitted physicians and providers bill for overfill. MELGEN sent this email
MENENDEZ approximately 5:01 p.m.
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220. about October 19, 2012, also approximately 5:01 p.m., MELGEN emailed Staffer the same attachment described the preceding paragraph.
221. about October 19, 2012, approximately 5:03 p.m., MELGEN emailed the
same attachment described paragraph 219 Fundraiser Majority PAC fundraiser and
former staffer and fundraiser for Senator
222. about October 20, 2012, Fundraiser responded MELGEN email,
stating,
Dr. Sal, going see him Tuesday. will give this him directly. that ok? sure will forward this [the Senior Health Counsel for Senator his
office. She was the staff person the meeting before. would suggest that
someone come and brief her the updated information.
223. about October 22, 2012, MELGEN forwarded MENENDEZ email
received from Lobbyist about October 20, 2012. The email from Lobbyist MELGEN
read follows:
Sal
the sleeping bear has awakened. attach letter received today from the
Medicare Appeals Council. The letter denies our request for oral argument but
gives additional days submit supplemental brief. would not surprise this was triggered the meetings earlier this summer and someone looking
into the status the case. When they found that was not moving, they pushed it,
hoping that this would satisfy you.
224. about October 22, 2012, MELGEN separately forwarded Staffer the
same email that he, MELGEN, received from Lobbyist about October 20, 2012, described the preceding paragraph.
225. about October 22, 2012, Staffer responded MELGEN, Thanks. Will
call you.
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COUNT
Two U.S.C. 1952,2
(Travel Act)
226.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
227. about April 2010, the District New Jersey and elsewhere, the
defendant,
ROBERT MENENDEZ,
aided, abetted, induced, and caused the defendant, SALOMON MELGEN, traveled
interstate and foreign commerce from Newark, New Jersey, Paris, France, with the intent
promote, manage, establish, and carry on, and facilitate the promotion, management,
establishment, and carrying on, unlawful activity, wit, bribery, violation Title 18,
United States Code, Sections 201(b)(2)(A) and 201(b)(1)(A), and thereafter did perform and
attempt perform acts promote, manage, establish, and carry on, and facilitate the promotion,
management, establishment, and carrying on, that unlawful activity; that is, MENENDEZ,
United States Senator, corruptly demanded, sought, received, accepted, and agreed receive and
accept, and MELGEN corruptly gave, offered, promised, and agreed give MENENDEZ, hotel
stay the Park Hyatt Paris Vend me, necessitating that MENENDEZ fly from Newark, New
Jersey, Paris, France, with intent influence MENENDEZ the performance official acts, opportunities arose.
All violation Title 18, United States Code, Sections 1952 and
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3353
COUNT THREE U.S.C. 201(b)(2)(A)
(Bribery)
228.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
229.
Between about August 2010, and about August 2010, the District New Jersey and elsewhere, the defendant,
ROBERT MENENDEZ,
being public official, directly and indirectly, corruptly did demand, seek, receive, accept, and
agree receive and accept anything value personally return for MENENDEZ being
influenced the performance official act; that is, MENENDEZ, United States Senator,
sought and received from SALOMON MELGEN roundtrip flight MELGEN private jet
the Dominican Republic, starting the Washington Metropolitan Area and ending Teterboro,
New Jersey, with stops West Palm Beach, Florida, return for MENENDEZ being influenced the performance official acts, opportunities arose.
All violation Title 18, United States Code, Section 201(b)(2)(A).
COUNT FOUR U.S.C. 201(b)(1)(A)
(Bribery)
230.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
231.
Between about August 2010, and about August 2010, the District New Jersey and elsewhere, the defendant,
SALOMON MELGEN,
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3354
directly and indirectly, corruptly did give, offer, and promise anything value public official
with intent influence official act; that is, MELGEN offered and gave ROBERT
MENENDEZ, United States Senator, roundtrip flight his, MELGEN private jet the
Dominican Republic, starting the Washington Metropolitan Area and ending Teterboro, New
Jersey, with stops West Palm Beach, Florida, order influence MENENDEZ official acts, opportunities arose.
All violation Title 18, United States Code, Section 201(b)(1)(A).
COUNT FIVE U.S.C. 201(b)(2)(A)
(Bribery)
232.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
233.
Between about September 2010, and about September 2010, the
District New Jersey and elsewhere, the defendant,
ROBERT MENENDEZ,
being public official, directly and indirectly, corruptly did demand, seek, receive, accept, and
agree receive and accept anything value personally and for another person return for
MENENDEZ being influenced the performance official act; that is, MENENDEZ,
United States Senator, sought and received from SALOMON MELGEN roundtrip flight
MELGEN private jet the Dominican Republic for himself and guest, starting and ending
Teterboro, New Jersey, with stops West Palm Beach, Florida, return for MENENDEZ being
influenced the performance official acts, opportunities arose.
All violation Title 18, United States Code, Section 201(b)(2)(A).
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3355
COUNT
Six U.S.C. 201(b)(1)(A)
(Bribery)
234.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
235.
Between about September 2010, and about September 2010, the
District New Jersey and elsewhere, the defendant,
SALOMON MELGEN,
directly and indirectly, corruptly did give, offer, and promise anything value public official
and another person with intent influence official act; that is, MELGEN offered and gave
ROBERT MENENDEZ, United States Senator, and MENENDEZ guest, roundtrip flight
his, MELGEN private jet the Dominican Republic, starting and ending Teterboro, New
Jersey, with stops West Palm Beach, Florida, order influence MENENDEZ official acts, opportunities arose.
All violation Title 18, United States Code, Section 201(b)(1)(A).
COUNT SEVEN U.S.C. 201(b)(2)(A)
(Bribery)
236.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
237.
Between about October 2010, and about October 11, 2010, the
District New Jersey and elsewhere, the defendant,
ROBERT MENENDEZ,
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being public official, directly and indirectly, corruptly did demand, seek, receive, accept, and
agree receive and accept anything value personally return for MENENDEZ being
influenced the performance official act: that is, MENENDEZ. United States Senator.
sought and received from SALOMON MELGEN roundtrip flight West Palm Beach, Florida,
starting with first-class commercial flight from Newark, New Jersey. costing approximately
$890.70, and ending with private chartered flight the Washington Metropolitan Area costing
approximately $8,036.82, return for MENENDEZ being influenced the performance
official acts, opportunities arose.
All violation Title 18, United States Code. Section 201(b)(2)(A).
COUNT EIGHT U.S.C. 201(b)(1)(A)
(Bribery)
238.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated. realleged, and incorporated reference though fully set forth herein.
239.
Between about October 2010, and about October 11, 2010, the
District New Jersey and elsewhere, the defendant,
SALOMON MELGEN,
directly and indirectly, corruptly did give, offer, and promise anything value public official
with intent influence official act; that is. MELGEN offered and gave ROBERT
MENENDEZ. United States Senator. roundtrip flight West Palm Beach, Florida, starting
with first-class commercial flight from Newark. New Jersey, costing approximately $890.70,
and ending with private chartered flight the Washington Metropolitan Area costing
approximately $8.03 6.82. order influence MENENDEZ official acts, opportunities arose. --klFirrvio1ationofTitie 8Efted StateseodeSectionO)(Ly(A)
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COUNT NINE U.S.C. 201(b)(2)(A)
(Bribery)
240.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
241. about May 16, 2012, the District New Jersey and elsewhere, the
defendant,
ROBERT MENENDEZ,
being public official, directly and indirectly, corruptly did demand, seek, receive, accept, and
agree receive and accept anything value personally and for another entity return for
MENENDEZ being influenced the performance official act; that is, MENENDEZ,
United States Senator, sought and received from SALOMON MELGEN $40,000 for the New
Jersey Democratic State Committee Victory Federal Account, and $20,000 for The Fund Uphold
the Constitution, legal defense fund, which benefitted MENENDEZ, return for MENENDEZ
advocacy the State Department behalf MELGEN his contract dispute with the
Government the Dominican Republic.
All violation Title 18, United States Code, Section 201(b)(2)(A).
COUNT TEN U.S.C. 201(b)(1)(A)
(Bribery)
242.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
243. about May 16, 2012, the District New Jersey and elsewhere, the
defendant,
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3358
SALOMON MELGEN,
directly and indirectly, corruptly did give, offer, and promise anything value public official
and another entity with intent influence official act; that is, MELGEN offered and gave
$40.000 the New Jersey Democratic State Committee Victory Federal Account, and $20.000
The Fund Uphold the Constitution, legal defense fund, which benefitted ROBERT
MENENDEZ. United States Senator, return for MENENDEZ advocacy the State
Department behalf MELGEN his contract dispute with the Government the Dominican
Republic.
All violation Title 18. United States Code, Section 201(b)(1)(A).
COUNT ELEVEN U.S.C. 201(b)(2)(A)
(Bribery)
244.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated. realleged, and incorporated reference though fully set forth herein.
245. about June 2012. the District New Jersey and elsewhere, the
defendant,
ROBERT MENENDEZ,
being public official, directly and indirectly, corruptly did demand, seek, receive, accept, and
agree receive and accept anything value personally and for another entity return for
MENENDEZ being influenced the performance official act; that is, MENENDEZ,
United States Senator. sought and received from SALOMON MELGEN approximately $300,000
for Majority PAC that was earmarked for the New Jersey Senate race. which benefrtted
MENENDEZ. return for MENENDEZ advocacy the highest levels CMS and HHS
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3359
All violation Title 18, United States Code, Section 201(b)(2)(A).
COUNT TWELVE U.S.C. 201(b)(1)(A)
(Bribery)
246.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
247. about June 2012, the District New Jersey and elsewhere, the
defendant,
SALOMON MELGEN,
directly and indirectly, corruptly did give, offer, and promise anything value public official
and another entity with intent influence official act; that is, MELGEN offered and gave
approximately $300,000 Majority PAC that was earmarked for the New Jersey Senate race,
which benefitted ROBERT MENENDEZ, United States Senator, return for MENENDEZ
advocacy the highest levels CMS and HHS behalf MELGEN his Medicare billing
dispute.
All violation Title 18, United States Code, Section 201(b)(1)(A).
COUNT THIRTEEN U.S.C. 201(b)(2)(A)
(Bribery)
248.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
249.
From about September 30, 2012, about October 12, 2012, the
District New Jersey and elsewhere, the defendant,
ROBERT MENENDEZ,
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3360
being public official, directly and indirectly, corruptly did demand, seek, receive, accept, and
agree receive and accept anything value personally and for another entity return for
MENENDEZ being influenced the performance official act; that is, MENENDEZ,
United States Senator, sought and received from SALOMON MELGEN approximately $103,500
for various New Jersey county Democratic Party entities, and approximately $300,000 for
Majority PAC that was earmarked for the New Jersey Senate race, all which benefitted
MENENDEZ, return for MENENDEZ advocacy the highest levels HHS behalf
MELGEN his Medicare billing dispute.
All violation Title 18, United States Code, Section 201(b)(2)(A).
COUNT FOURTEEN U.S.C. 201(b)(1)(A)
(Bribery)
250.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
251.
From about September 30, 2012, about October 12, 2012, the
District New Jersey and elsewhere, the defendant,
SALOMON MELGEN,
directly and indirectly, corruptly did give, offer, and promise anything value public official
and another entity with intent influence official act; that is, MELGEN offered and gave
approximately $103,500 various New Jersey county Democratic Party entities, and
approximately $300,000 Majority PAC that was earmarked for the New Jersey Senate race, all which benefitted ROBERT MENENDEZ, United States Senator, return for MENENDEZ
advocacy the highest levels HHS behalf MELGEN his Medicare billing dispute.
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3361
COUNTS FIFTEEN THROUGH SEVENTEEN U.S.C. 1341, 1343, 1346,
(Honest Services Fraud)
252.
The allegations contained paragraphs through 225 this Indictment are hereby
repeated, realleged, and incorporated reference though fully set forth herein.
253,
From least about January 2006 through about January 2013, the
District New Jersey and elsewhere, the defendants.
ROBERT MENENDEZ and
SALOMON MELGEN,
devised and intended devise scheme and artifice defraud and deprive the United States and
the citizens New Jersey their right the honest services ROBERT MENENDEZ, United
States Senator, through bribery.
USE INTERSTATE WIRES EXECUTE THE SCHEME
254. about the dates listed below, the District New Jersey and elsewhere.
MENENDEZ and MELGEN. for the purpose executing the above-described scheme and artifice defraud and deprive, transmitted and caused transmitted means wire and radio
communication interstate commerce, signals and sounds; that is, they caused pilots
communicate via interstate wire and radio the following signals and sounds:
Count
Date
SinaI and Sound
August 2010
Pilot MELGEN private jet, which
MENENDEZ was passenger. New Jersey air
space air traffic control New York
September 2010
Pilot MELGEN private jet, which
MENENDEZ was passenger, New Jersey air
space air traffic control New York
A11invjp14pQfj]iJcJ,1JjEuitI
Case 2:15-cr-00155-WHW Document 149 Filed 10/06/16 Page PageID: 3362
USE PRIVATE COMMERCIAL INTERSTATE
CARRIER EXECUTE THE SCHEME
255. about the date listed below, the District New Jersey and elsewhere,
MENENDEZ and MELGEN. for the purpose executing the above-described scheme and artifice defraud and deprive,