Former California Man Pleads Guilty in Scheme to Defraud the Baltimore Washington Medical Center
Baltimore, Maryland - John Milisitz, age 37, formerly of Encinitas, California, pleaded guilty today to mail fraud in connection with a scheme to defraud the Baltimore Washington Medical Center (BWMC), where his mother, Margie Milisitz, was employed.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.
According to the plea agreement, Margie Milisitz was employed by BWMC as the Manager of Telecommunications. In addition to being responsible for overseeing the purchase and maintenance of telecommunication services and equipment for BWMC, it was part of Margie Milisitz’s duties to select vendors for the various telecommunications services and equipment, issue purchase orders, and to approve invoices from those vendors for payment.
Beginning in May 2005, and continuing until January 15, 2008, John Milisitz and his mother submitted false invoices to BWMC for telecommunications services and equipment that were never provided to the hospital. Margie Milisitz submitted invoices to the BWMC Accounts Payable Department, in the name of Global 1 Telecommunications and U.S. Cellular, companies associated with John Milisitz, falsely indicating that the goods and services listed on the Global 1 and US Cellular invoices had been received by BWMC. This caused the Accounts Payable Department to issue payments on the invoices, which were deposited into bank accounts controlled by John Milisitz. As a result of this scheme, the Milisitz’ obtained more than $380,000 from BWMC, which they used for their own benefit, including paying credit card and household expenses, entertainment and travel.
John Milisitz faces a maximum sentence of 20 years in prison for mail fraud. U.S. District Judge J. Frederick Motz has scheduled sentencing for February 10, 2011 at 9:00 a.m.
Margie L. Milisitz, age 58, of Severna Park, Maryland, pleaded guilty to the same charge and is scheduled to be sentenced on January 11, 2011, at 9:00 a.m..
United States Attorney Rod J. Rosenstein commended the FBI for its work in this investigation and thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.