South Florida man’s $20M Medicare fraud bought Rolexes, prison
Miami Herald (FL)
For four years, Delray Beach's Marc Sporn spun the millions streaming to him from his Medicare fraud into ostentatious personal screams of wealth from the classic (1965 Porsche, 2014 Bentley, 1963 Mercedes) to the ostentatious (a $49,500 ladies diamond tennis bracelet, a $92,000 diamond necklace).
Starting in January, Sporn will spin in place, that place being federal prison after his sentencing to 14 years for attempt and conspiracy to commit mail fraud and attempt to evade and defeat income tax. Sporn, 59, also owes $24,045,779 total restitution, $4,212,850 of which will be to the IRS. Sporn dodged paying taxes for the years 2000, 2002-2011, 2014 and 2015.
The watches, the cars, the jewelry bought by fraud
1963 Mercedes 190SL bought and restored for $102,000;
27-foot Leopard Motoryacht named "MYTouchstone," EUR680,000 (about $804,440 at the average 2021 exchange rate) in Monaco;
102-foot Leopard Motoryacht named "MY RG 512," EUR1,370,000 (about $1,620,710) in Luxembourg.
Sporn also spent $35,000 renovating the kitchen at his Delray Beach home, where he lived with the listed owner, Michelle Larkin.
How the Medicare fraud schemes worked
Larkin was on a joint bank account with Sporn that was turned over in forfeiture along with an account for New World Holdings and three accounts for Walmol Holdings. She's also on the original, 2014 state registration paperwork for Walmol and telemarketing company Medi-Biotech, the former as the company's registered agent. Walmol existed as a shell company to put on bank accounts that took money transfers from Medi-Biotech bank accounts.
As described in Sporn's guilty plea, he used Medi-Biotech to get "customers with certain health conditions to sign up to receive compounded prescription creams from pharmacies and laboratories affiliated with Medi-Biotech."
The insurance companies got billed and the pharmacies and labs paid Sporn kickbacks from the profits. These pharmacies and laboratories billed the customers' insurance companies for these compounded prescription creams, and paid Sporn kickbacks from the insurance payment profits.
Telemarketing call centers also came in handy for getting Medicare beneficiaries to take genetic tests they didn't need, Sporn's guilty plea says. Then, Sporn would get doctor authorization for the tests.
"Sporn sold these for information, tests, and doctor's orders to laboratories in exchange for kickbacks, including LabSolutions, LLC, Best Care Laboratory, LLC andSuretox Laboratory, LLC," Sporn's guilty plea says. "LabSolutions, Best Care an Surtox paid Sporn, through his companies, approximately $9,690,457 in kickbacks and bribes."
Also, from January 2017 through April 2021, Sporn's admission of facts says, "Sporn sold prescriptions, also known as doctor's orders, authorizing Medicare beneficiaries to receive medically unnecessary orthotic braces, genetic tests, and topical creams."
The doctors and Medicare beneficiaries were strangers. Prescriptions were written for the equipment and tests often without talking to the patients.
"Through his companies, in exchange for kickbacks and bribes, Sporn sold the doctor's orders to patient recruiters who, as Sporn knew, sold them to DME (durable medical equipment) companies, pharmacies, and laboratories," his guilty plea admits. "As Sporn knew, the DME companies, pharmacies, and laboratories used the doctor's orders to submit claims to Medicare."
Sporn's guilty plea included a chart of some of the patient recruiters who paid kickbacks to Sporn for doctor's orders and how much Sporn and prosecutors say they paid. The chart doesn't include what years they allege the kickbacks were paid.
R&L Senior Marketing, Inc., $786,483. There's no record of R&L registering to do business in Florida.
Upon Demand LLC, $323,500. State records say Upon Demand was registered with the state on May 31, 2019 with Charles Schwartz as manager and the address of a Coral Springs home. Schwartz was still listed as manager when the company was dissolved Sept. 24, 2021.
Charles Phillip Schwartz, $44,300.
The Leads Network LLC, $239,930. State records say Leads, which is also named in the health care fraud conviction of Jonathan Rouffe, existed from Nov. 20, 2018 to Sept. 27, 2019. The Tampa company was run by Muhammad Sheraz, Leon Beauford and Muhammad Mughal.
Safari Capital Corporation, $171,975 and when doing business as GHP Management, $36,950. Though not found in state records, the federal charging papers that resulted in Alexi Bethel's conviction on health care fraud say Safari did business as GHP Management and operated out of Boca Raton.
R&S Pharmacy, $86,357. R&S, run by Carlos Belone out of Coconut Creek and Coral Springs after its 2018 reinstatement, changed its name to Canes Medical Services before July 2020 dissolution.
Alite Medical Solutions LLC, $49,170. State records say Alite existed from March 2017 through September 2019 and was run by Manhasset, New York's Brett Hirsch and Boca Raton's Keith Youngswick.
Dboss Enterprises paid $38,400. This Weston company existed from July 2015 through September 2021, state records say, and was registered and run by Pablo Camus.
Status Management LLC, $30,130. Status Management isn't listed as registered to do business in Florida.
RKT Partners LLC, $21,000. State records say RKT, a Tampa company, existed from March 2017 through September 2020. It's listed managers, from registration to dissolution, were Parrish's Ryan Mailly, Valrico's Keith Strotz; and Wesley Chapel's Terry Bleistein.
SKF Enterprises LLC, $20,000. State records say SKF existed from January 2015 through September 2020 and was run by New Port Richey's Samuel Friedman and Krystal Friedman.