William M. Worthy II, Healthcare Benefits Scheme, Tennessee 2016

Second Person Pleads Guilty In Smart Data Solutions, LLC, National Healthcare Benefits Scheme

William M. Worthy, II, 53, of Isle of Palms, South Carolina, pleaded guilty today to federal charges arising from a national healthcare benefits scheme that defrauded more than 17,000 victims, announced David Rivera, United States Attorney.

During a hearing before U.S. District Court Judge Aleta A. Trauger, Worthy pleaded guilty to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement, and money laundering. At the plea hearing Worthy admitted participating in a scheme designed to defraud thousands of individuals who purchased purported healthcare coverage from Worthy and his co-conspirators.

Worthy acknowledged his role in promoting and selling the healthcare plans not backed by insurance companies, which were marketed by Smart Data Solutions, LLC, a company located in Springfield, Tennessee owned and managed by Bart Sidney Posey, Sr., who is charged as a co-conspirator in this case.

Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use. He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.

Worthy is scheduled to be sentenced by Judge Trauger on January 21, 2016. He faces up to 20 years in prison on the wire fraud charge and up to 5 years in prison on the conspiracy charge. Worthy will also be ordered to pay restitution to the victims of the fraud schemes and will face forfeiture of the proceeds of his crimes.

Defendant: William M. Worthy, II. Charges: One count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement, and money laundering. City and State: Isle of Palms, South Carolina. Date: 2016. Sentence: Up to 20 years in prison on the wire fraud charge and up to 5 years in prison on the conspiracy charge, with restitution to be ordered. Amount: More than $5.4 million in premiums embezzled and more than $7.3 million in losses from the fraud.

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