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ITMG Insider Threat Cases – December 7, 2021

What Happens when an Insider Threat Vendor has an Insider Threat?

Insider threats affect everybody. If there had ever been any doubt, look no further than Code42, a vendor specializing in insider threat protection. The company will soon release a blog post describing how a Code42 feature implemented only around a week ago caught a former employee who had improperly downloaded Salesforce data.

Business School Dean Guilty of Data Conspiracy

The former dean of a business school in Philadelphia has been found guilty of involvement in a fraudulent scheme to doctor program rankings using false data.

From 2014 to 2018, Porat colluded with Fox professor Isaac Gottlieb and a Fox employee named Marjorie O’Neill to give false data to US News & World Report about the school’s online MBA (OMBA) and part-time MBA (PMBA) programs.

Federal Jury Convicts Pharmacy Owner For Role In $174 Million Telemedicine Pharmacy Fraud Scheme

According to court documents and evidence presented at trial, Bolos and his co-conspirators, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing claims worth more than $174 million that private insurers such as, Blue Cross Blue Shield of Tennessee, and public insurers such as, Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.

Nonprofit CEO Pleads Guilty to Wire Fraud in Relation to Covid-19 Loan Fraud

According to his guilty plea, Fitzgerald-Holley used his non-operational nonprofit, the Coalition for Social Justice and Reform Incorporated (the Coalition), to fraudulently obtain COVID-19 relief funds. Since the Coalition’s formation in 2018, the nonprofit had no employees, income, or regular operations.

On March 31, 2020, Fitzgerald-Holley submitted an Economic Injury Disaster Loan (EIDL) application for $150,000 in funds to the Small Business administration (SBA) on behalf of the Coalition. On June 3, 2020, the SBA denied the Coalition’s application for an EIDL.On the same day, Fitzgerald-Holley contacted the SBA to request reconsideration of the EIDL application. The SBA did not approve Fitzgerald-Holley’s request for reconsideration of his EIDL or provide Fitzgerald-Holley with any EIDL funding.

Employee Sentenced for Stealing $270,000 from Medical Practice

Joshua D. Millspaugh, 42, worked as the practice administrator for Whitson Vision, P.C., with responsibility for payroll processing, purchasing and bill payment. He was paid an annual salary of over $100,000. However, less than a year after starting his employment, Millspaugh began using his access to company accounts to divert money to himself. Over the next five years, through over 500 separate transactions, Millspaugh used company money to make personal purchases, pay personal bills, and send extra payroll checks to his bank account—all of which he concealed with false entries in the company’s books and fictitious justifications when asked about the expenditures.

Former Chief Financial Officer and Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Arrested for Insider Trading

According to U.S. Attorney Erskine, the charges and other information presented in court: Kevin Rumph, Jr., a U.S. Air Force veteran, was employed as a Purchasing Agent by the U.S. Department of Veteran Affairs (VA) and had worked there since 2012. He worked in the VA’s Prosthetic Department at its Community Based Outpatient Clinic (CBOC) located in Fort McPherson, Atlanta, Georgia.

Rumph’s job duties included receiving prosthetic request forms and prescriptions from physicians, therapists, patients, and patient representatives, and reviewing those forms for proper documentation and justification of the items, services, and durable medical equipment being requested. Rumph prepared purchase orders for a wide variety of prosthetic and sensory aids devices, medical supplies, and durable medical equipment and coordinated the delivery of medical equipment and supplies through contracted providers utilizing his VA-issued purchase card.

This entry was posted on Tuesday, December 7th, 2021 at 7:48 pm. Both comments and pings are currently closed.