Telemedicine company owner sentenced to 14 years for $20M fraud scheme

A Florida telemedicine company owner was sentenced to 14 years in prison for healthcare and wire fraud that cost Medicare more than $20 million dollars. 

Marc Sporn, 59, of Delray Beach, Fla., owned and operated telemarketing and telemedicine companies including CPL Media Group Inc. Medipak, Real Time Physicians, 24 HR Virtual MD, Medtech Worldwide, New World Holdings and Ins Cov. 

He used these companies to market medically unnecessary genetic tests to Medicare beneficiaries, and to sell prescriptions or medically unnecessary genetic tests to laboratories in exchange for kickbacks and bribes, according to the Justice Department. 

Mr. Sporn also owned and operated Medi Biotech and Walmol Holdings, which he used to market compounded prescription creams to customers with certain health conditions.

The pharmacies and laboratories that worked with Medi Biotech filled the prescriptions, billed the customers' insurance companies and paid Mr. Sporn kickbacks.

Mr. Sporn also avoided paying more than $2.5 million in personal income taxes and tried to conceal his assets by transferring property to trusts and individuals and by repeatedly opening and closing companies, according to the Justice Department. 

In addition to the 14 year prison term, Mr. Sporn is ordered to pay more than $4 million in restitution to the IRS.

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