Former eHealth Technologies CEO accused of defrauding company out of $455K

FierceHealthcare | February 19, 2019

The former CEO of eHealth Technologies is accused of defrauding the Rochester, New York-based health IT company and was indicted on multiple charges by a federal grand jury last Friday. Michael Margiotta was indicted on 15 counts, including wire fraud, money laundering, and filing a false tax return. Margiotta, who faces up to 20 years in prison, was arraigned Friday in U.S. District Court in Rochester in front of U.S. Magistrate Judge Marian W. Payson and released, the Department of Justice said in a release. According to the U.S. Attorney’s Office in the Western District of New York, during a three-year period, Margiotta caused eHealth Technologies to pay about $455,000 in false and fraudulent invoices, with most of these funds transferring into his personal brokerage accounts. The company is a provider of medical record retrieval and organization services and image-enabled Health Information Exchanges. Margiotta served as CEO between May 2011 and January 2014, according to Assistant U.S. Attorney John Field, who is handling the case.

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