Owner and Operator of Telemedicine and Telemarketing Companies Sentenced to 14 Years for $20 Million Fraud Scheme and $4 Million Tax Evasion

A Florida man was sentenced to 14 years in jail today for health-care and wire fraud, which cost Medicare more than $20 million dollars, as well as tax evasion.

Marc Sporn, 59, of Delray Beach, allegedly owned and operated several- telemarketing and telemedicine businesses, 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, according to court documents. In exchange for kickbacks and bribes, Sporn used these companies to promote medically unnecessary genetic testing to Medicare beneficiaries and to sell prescriptions (i.e., doctors’ orders) for medically unnecessary genetic tests to laboratories.

Sporn was well aware that these laboratories would bill Medicare for medically inappropriate products and services based on these doctors’ prescriptions.

Sporn also controlled and operated Palm Beach enterprises- Medi Biotech LLC and Walmol Holdings LLC through nominee owners. Sporn used Medi Biotech to sell compounded prescription creams to those who had specific health problems. Medi Biotech-affiliated pharmacies and laboratories filled the prescriptions, invoiced the consumers’ insurance providers, and paid Sporn bribes. In addition to opening bank accounts in nominee names for Medi Biotech, Sporn opened accounts in the name of Walmol Holdings, a shell organization, and diverted millions through the company’s accounts to avoid paying over $1.6 million in personal income taxes in 2014 and 2015. Sporn purchased luxury products such as high-end watches and diamond jewelry, vintage and exotic cars, two yachts, and other stuff using these company accounts.

Sporn also evaded paying over $2.5 million in personal income taxes for other years dating back to 2000. When the IRS attempted to collect back taxes from Sporn, he tried to conceal assets by transferring property to trusts and individuals and by repeatedly opening and closing companies, among other things. In addition to the prison term, Sporn was ordered to pay more than $4 million in restitution to the IRS.

The FBI’s Miami Field Office, HHS-OIG, and IRS-CI investigated the case.

Trial Attorneys Ligia Markman and Reginald Cuyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Aurora Fagan for the Southern District of Florida prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes.

More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.