Former California Man Sentenced to Prison in Scheme to Defraud the Baltimore Washington Medical Center
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced John Milisitz, age 37, formerly of Encinitas, California, today to 21 months in prison, followed by three years of supervised release, for mail fraud in connection with a scheme to defraud the Baltimore Washington Medical Center (BWMC), where his mother, Margie Milisitz, was employed. Judge Motz also ordered Milisitz to pay restitution of $380,000.
The sentence 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.
Margie L. Milisitz, age 58, of Severna Park, Maryland, pleaded guilty to the same charge and was sentenced to 21 months in prison on February 2, 2011. Judge Motz also ordered Margie Milisitz to pay restitution of $380,000.
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 prosecuted the case.