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Ohio Business Owner Pleads Guilty to Mail and Wire Fraud
Robert E. Alick, a resident of Chagrin Falls, Ohio and operator of used medical equipment sales business, pleaded guilty today to five counts of mail fraud, one count of wire fraud, and one count of corruptly endeavoring to obstruct the administration of the Internal Revenue laws, in a scheme that defrauded six hospitals across the country.
According to the indictment and the plea agreement, Alick operated his used medical equipment sales business in Beachwood, Ohio, through the following entities: Healthcare Imaging Solutions Corporation, ECT Medical Systems Inc., ECT Corporation, Second Source Medical Equipment Corporation and Computer Remarketing Credit Corporation d/b/a DECT Imaging. Alick also admitted that he used this series of corporations both as part of his fraudulent scheme and to avoid paying taxes.
The scheme involved Alick taking substantial deposits from hospitals that were supposed to be used to purchase medical equipment, but instead using the money on other things. The hospitals that were defrauded include Toledo Hospital (Toledo, Ohio), Greene County Medical Center (Jefferson, Iowa), Canyon Surgery Center (Phoenix), North Suburban Surgery Center (Thorton, Colo.), Clarion Hospital (Clarion, Penn.) and Hugh Chatham Hospital (Elkin, N.C.).
Alick also admitted to obstructing and impeding the IRS by failing to cause his corporations to file corporate income tax returns from 2001 through 2006, and making extensive use of cash to avoid making accurate records of his income, as well as using nominee bank accounts to conceal his and his corporations’ income and assets from the IRS.
The sentencing has been scheduled for June 3, 2010. Alick faces a maximum potential sentence of 20 years in prison followed by up to three years of supervised release, and a fine of $250,000, for each of the mail and wire fraud counts. In addition, Alick faces a maximum potential sentence of three years in prison followed by one year of supervised release and a fine of $250,000, for the tax crime.
Acting Assistant Attorney General John A. DiCicco and United States Attorney for the Northern District of Ohio Steven M. Dettelbach thanked Assistant United States Attorneys Michael L. Collyer and Christian Stickan and Tax Division trial attorney Patrick J. Murray, who are prosecuting the case. They also thanked the agents of the FBI and the IRS whose assistance was essential to the successful investigation and prosecution of the case.
Robert E. Alick, a resident of Chagrin Falls, Ohio, faces a maximum potential sentence of 20 years in prison followed by up to three years of supervised release, and a fine of $250,000, for each of the mail and wire fraud counts. He also faces a maximum potential sentence of three years in prison followed by one year of supervised release and a fine of $250,000, for the tax crime.
Alick’s scheme involved defrauding six hospitals across the country, including Toledo Hospital (Toledo, Ohio), Greene County Medical Center (Jefferson, Iowa), Canyon Surgery Center (Phoenix), North Suburban Surgery Center (Thorton, Colo.), Clarion Hospital (Clarion, Penn.) and Hugh Chatham Hospital (Elkin, N.C.).
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/.
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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