Telemedicine Company Owner Gets 14-Year Sentence for Fraud Scheme
The owner of a telemedicine company has been sentenced to 14 years in prison following a $20 million healthcare and wire fraud scheme.
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By - Telemarketing and telemedicine company owner Marc Sporn of Delray Beach, Florida, was sentenced to 14 years in prison following a healthcare and wire fraud scheme, which bilked Medicare out of more than $20 million.
Since 2007, the Fraud Section, part of the Justice Department’s Criminal Division, has tried to curb healthcare fraud using the Healthcare Fraud Strike Force Program, which includes 15 strike forces across 24 federal districts.
Through the program, federal investigators discovered that Sporn used his leadership roles at telemedicine and telemarketing companies to engage in fraud.
Sporn operates several companies, including CPL Media Group Inc, Medipak, LLC, Real Time Physicians LLC, 24 HR Virtual MD LLC, Medtech Worldwide Inc, New World Holdings Inc, and Ins Cov LLC, which he used to make unnecessary genetic tests to Medicare beneficiaries in exchange for bribes.
Further, he used the companies to sell prescriptions for medically unnecessary genetic tests to laboratories in exchange for kickbacks.
Sporn also used Medi Biotech and Walmol Holdings to market compound prescription creams to people with certain conditions, leading pharmacies to bill the customers' insurance companies and pay him kickbacks. He used Walmol Holdings company accounts to divert millions of dollars to avoid paying his personal income taxes and purchase luxurious items such as watches, jewelry, cars, and yachts.
Additionally, Sporn evaded paying more than $2.5 million in personal income taxes over several years dating back to 2000. When confronted by the IRS, he temporarily transferred assets to external trusts while opening and closing companies.
The court determined that Sporn was involved in a $20 million healthcare and wire fraud scheme and sentenced him to 14 years in prison, along with a $4 million fine in restitution to the IRS.
Fraud is common in healthcare, and perpetrators are increasingly using virtual care to conduct their schemes.
In May, the two owners of telemedicine company RediDoc LLC pleaded guilty to violating the Anti-Kickback Statute, as well as participating in healthcare fraud. Their actions included bribing doctors and soliciting from various organizations. It was estimated that the two owners received about $32 million in reimbursement from marketing companies. The pending penalties could involve fines, restitution, forfeiture, and time in prison.
Also, in May, seven people were sentenced for their involvement in a telemedicine pharmacy fraud scheme. Each person, along with the corporate entities they worked for, was accused of deceiving pharmacy benefit managers regarding tens of thousands of prescriptions. The leader, Peter Bolos, received a 14-year sentence and $2.5 million in forfeiture. For the others, penalties included probation, imprisonment, and millions in restitution.
