February 16, 2019 12:52 PM
BUFFALO, N.Y. (WHEC)- A former Rochester-area CEO has been charged with defrauding his own company.
According to United State Attorney James P. Kennedy, Jr., 48-year-old Michael Margiotta has been indicted on 15 counts including wire fraud, money laundering, and filing a false tax return. The charges carry a maximum penalty of 20 years in prison.
In a press release, it is stated by Assistant U.S. Attorney John J. Field that Margiotta was CEO of eHealth Global Technologies, Inc. between May 2011 and January 2014. While there, Margiotta entered into a contract with Healthcare Network Alliance for employment recruiting services, and through his actions caused HCNA to issue fraudulent invoicesto eHealth and then directed subordinate employees at eHealth to pay the invoices. He also directed an individual to submit fraudulent invoices to eHealth for services actually provided by an unrelated entity.
In total, Margiotta is said to have cost eHealth about $455,000 in false and fraudulent invoices, most of the funds transferred into his personal brokerage accounts.
Margiotta is also charged with overstating his expnses and/or income in his tax returns. He has been released on conditions after arraignment.
Updated: February 16, 2019 12:52 PM
Created: February 15, 2019 07:01 PM
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