Related Federal Cases
Nashville Businessman Sentenced in $700,000 Ponzi Scheme
NASHVILLE, Tenn. – A Nashville-based holistic wellness business founder was sentenced to eight years in federal prison for operating a Ponzi scheme that duped over 80 patients, financial institutions, and investors out of nearly $700,000.
Howard L. Young, 75, the founder of Integrative Medical Services (IMS), pleaded guilty in December to four counts of bank fraud, six counts of wire fraud, and aggravated identity theft. Young was sentenced by U.S. District Judge William L. Campbell, Jr. to eight years in prison and ordered to pay $693,128.66 in restitution.
The charging documents allege that Young founded IMS in 2015, claiming to hold a Doctor of Naturopathy degree, but he did not have a medical license. He began soliciting patients, investors, and employees, telling them that he had obtained a $2 million grant from Vanderbilt University to study cancer patients and other patients with chronic medical conditions.
Young promised patients that they would receive nutritional supplements, blood testing, nutrition and exercise coaching, gym memberships, massages, and acupuncture as part of the "study," but in reality, he did not hold the money in escrow as promised and withdrew a portion of the funds for his own personal use.
Patients did not routinely receive the promised services, and Young made minimum payments on account holders’ credit accounts and loan accounts to conceal the fraud. The business generated little revenue, with the vast majority of funds flowing into IMS being deposits from CareCredit credit accounts.
Young’s scheme targeted approximately 80 vulnerable victims, many of whom had been diagnosed with cancer or other debilitating medical conditions. He convinced one victim to transfer the title of his house to him in order to participate in the "study," and even changed the mailing addresses for patients’ accounts to conceal the fraud.
The U.S. Attorney’s Office for the Middle District of Tennessee announced the sentencing, with Acting U.S. Attorney Mary Jane Stewart stating that the sentence reflects the severity of Young’s crimes and the harm caused to his victims.
Key Facts
- State: Tennessee
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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