Florida man sentenced to 14 years for health care, wire fraud

FLORIDA — A Florida man has been sentenced to 14 years in prison for health care and wire fraud that cost Medicare more than $20 million dollars, and for evading taxes, the U.S. Department of Justice (DOJ) said in a statement.

Marc Sporn, 59, of Delray Beach, was sentenced on Thursday, the DOJ said.

In addition to the prison term, the DOJ said Sporn has been ordered to pay more than $4 million in restitution to the IRS.

According to court documents, Sporn, 59, owned and operated several telemarketing and telemedicine 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. Sporn reportedly used these companies to market medically unnecessary genetic tests to Medicare beneficiaries, and to sell prescriptions (i.e., doctors’ orders) for medically unnecessary genetic tests to laboratories in exchange for kickbacks and bribes.

Sporn knew these laboratories would use these doctors’ orders to bill Medicare for medically unnecessary goods and services, the DOJ said.

Through nominee owners, Sporn also allegedly operated and controlled Palm Beach companies Medi Biotech LLC and Walmol Holdings LLC. Sporn used Medi Biotech to market compounded prescription creams to customers with certain health conditions. Pharmacies and laboratories associated with Medi Biotech filled the prescriptions, billed the customers’ insurance companies, and paid Sporn kickbacks, the DOJ said in its statement.

In addition to opening bank accounts for Medi Biotech in nominee names, Sporn reportedly opened accounts in the name of Walmol Holdings, a shell corporation, and in 2014 and 2015, avoided paying over $1.6 million in personal income taxes by diverting millions through the company’s accounts.

The DOJ said Sporn used these company accounts to purchase luxury items such as high-end watches and diamond jewelry, classic and exotic cars, two yachts, and other items. Sporn also evaded paying over $2.5 million in personal income taxes for other years dating back to 2000, the DOJ said.

According to the DOJ, 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.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George Piro of the FBI’s Miami Field Office; Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Field Division; and Special Agent in Charge Matthew D. Line of IRS-Criminal Investigation (IRS-CI), Miami Field Office announced the sentence.

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.