A former CEO is accused of defrauding his former employer, Rochester, New York-based eHealth Technologies. Michael Margiotta faces 15 charges, which include wire fraud, money laundering and filing a false tax return.
Margiotta was the CEO of eHealth Technologies from 2011 to 2014. The company helps organize and retrieve medical records and images.
He allegedly submitted fake invoices
As CEO, he had an employment recruiting contract with Healthcare Network Alliance. The company received a fee for each eHealth employee it hired. Margiotta allegedly sent fake invoices from Healthcare Network Alliance to eHealth and then had employees pay these invoices.
Margiotta then transferred money to his brokerage accounts
He also allegedly had another employee submit fake invoices to eHealth for a group called Action Against Child Maltreatment. This is a charity that Margiotta runs. Prosecutors state he submitted about $455,000 in fake invoices to eHealth, and then he transferred this money to his own brokerage accounts.
He also allegedly underpaid on his taxes
Margiotta also stands accused of overstating his business expenses and underreporting his income on his tax returns. He may have evaded paying as much as $341,000 to the federal government.
If convicted, he faces up to 20 years in prison.
Money laundering is often coupled with other charges
Anyone who is accused of money laundering usually faces multiple charges. Money laundering occurs when someone tries to conceal the source of illegally obtained money. A person who launders money is trying to hide that the money was acquired through theft, racketeering or another criminal activity like dealing drugs.
Each transaction can be charged as separate crime. Money laundering is a felony in New York. The more money an individual is accused of laundering, the tougher the potential penalties. With multiple charges, fines and potential prison time also increases.
If you are accused of money laundering, consider contacting an experienced criminal defense attorney. An attorney can examine the charges against you and help you craft a case for your defense.