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MBA student faces 20 years imprisonment for health care fraud

The United States Department of Justice recently announced criminal charges against an MBA student in connection to a health care fraud scheme. The health care fraud scheme involves allegations a health care technology company falsely inflated data and overbilled clients for advertisements. The government claims these practices resulted in over $1 billion in fraudulent gains.

The health care tech company provides exam room tablets and waiting room flat screen televisions to share information with patients about various pharmaceutical products. The MBA student who now faces allegations of fraud joined the company after receiving honors distinctions from Wharton and was named to Crain’s prestigious “20 in their 20’s” list in 2016. He served in various roles during his time with the company, including chief financial officer and chief operating officer.

The government has claimed the company provided customers with fake reports and charged for advertisements when the television screens used to run the advertisements within patient waiting rooms were allegedly not yet installed. Facing these allegations, the MBA student chose to accept a guilty plea. According to the government, if he continues to cooperate, he would likely face no more than 10 years imprisonment.

The charges are a result of a two-year investigation and has resulted in both civil and criminal prosecution. The company’s CEO and president continue to face 26 criminal charges for fraud and could receive up to 30-year jail sentences if convicted. This case provides an example of the serious consequences that can come with allegations of health care fraud, and the sometimes-surprising places the government choses to investigate. The key takeaway from this case: any business that charges health insurance companies can face allegations of health care fraud