Assistant U.S. Attorney John J. Field, who is handling the
case, stated that according to the indictment, between May 2011 and January
2014, the defendant was Chief Executive Officer of eHealth Global Technologies,
Inc. As eHealth CEO, Margiotta entered into a contract with Healthcare Network
Alliance, LLC (HCNA) for employment recruiting services. According to the
contract, HCNA received a fee totaling 20% of an eHealth employee’s base salary
for the first year for each employee referred by HCNA and hired by eHealth. The
defendant caused HCNA to issue fraudulent invoices to eHealth and then directed
subordinate employees at eHealth to pay the invoices.
In addition, Margiotta caused an individual, identified as
Consultant A, to submit fraudulent invoices to eHealth for services actually
provided to an unrelated entity known as Action Against Child Maltreatment,
Inc. (AACM) that Margiotta controlled. Once again, the defendant directed
subordinate employees at eHealth to pay the invoices.
In total, the defendant caused eHealth to pay approximately
$455,000 in false and fraudulent invoices. A substantial portion of those funds
were transferred into Margiotta’s personal brokerage accounts.
Furthermore, for the tax years 2011-2014, on his personal
income tax returns, the defendant falsely overstated his business expenses
and/or understated his business income, among other misstatements, and as a
result, he evaded approximately $341,000 in taxes owed to the United States.
Margiotta also filed false tax returns for his charity, AACM, for tax years
2013-2014, in order to conceal the improper transfer of $80,000 of AACM’s
assets to himself.
The defendant was arraigned before U.S. Magistrate Judge
Marian W. Payson and was released on conditions.
The indictment is the culmination of an investigation by the
Internal Revenue Service, Criminal Investigations Division, under the direction
of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
