ROCHESTER, N.Y. (WROC) — The former CEO of eHealth Global Technologies was sentenced to serve 46 months in prison after he was convicted of fraud and filing a false tax return.
In May 2011, 51-year-old Michael Margiotta signed a contract with Healthcare Network Alliance, LLC (HCNA), which was owned by his wife. The agreement was that HCNA would be compensated if eHealth hired candidates that were referred to them.
Between June 2011 and January 2014, officials said Margiotta knowingly caused HCNA to submit invoices for recruitment services that they did not provide, such as an invoice requesting $44,000 for recruiting an employee that HCNA did not recruit.
Margotta caused them to submit fraudulent invoices for approximately 23 employees that were not recruited, which totaled over $380,000. He also filed a false tax return for 2013, claiming income of $260,334 when his actual income was over $611,000.
In addition to serving 46 months in prison, Margiotta was also ordered to pay over $914,000 in restitution to the IRS.