Andrew Rubin, a 37-year old Los Angeles City resident, pleaded guilty today to two-count information relating to a telemarketing scheme that purportedly sold work-at home medical billing opportunities. Rubin entered his guilty plea before U.S. District Court Judge R. Gary Klausner.
Rubin co-managed Medicor, LLC, a marketing company in Van Nuys, California. The guilty plea arises from Rubin’s scheme in directing employees of Medicor to deceive prospective customers into believing that, for a fee, they could set up a successful home-based medical billing business where they would receive a list of doctors who needed a medical billing service. Rubin devised, participated in, and executed a scheme to defraud consumers purchasing medical billing software and obtained money from these consumers by means of false and fraudulent pretenses, representations, promises, and the concealment of material facts.
Medicor placed advertisements in the help wanted section of numerous newspapers and publications. Generally, the advertisements stated that a person could potentially earn $20-$40 an hour from home by helping doctors submit medical bills to insurance companies. Between July 1999 to March 2001, Medicor sold over 30,000 Kwic-Claim Medical Billing Software packages for approximately $400 each (including shipping and handling). Rubin funneled a portion of his Medicor profits to an account at the Bank of New Zealand.
Sentencing for Rubin is set for January 8, 2007, where he faces a maximum sentence of 20 years in prison and fines of up to $500,000. As part of his plea, Rubin agreed to make restitution.
This case is the result of a joint investigation by IRS-Criminal Investigation and U.S. Postal Inspection Service, which followed a civil action conducted by the Federal Trade Commission.