CONTACT: Gina Balaya (313) 226-9758
 

FOR IMMEDIATE RELEASE:
 

United States Attorney Jeffrey G. Collins announced today that a resident of Detroit, Michigan entered a plea of guilty to two counts alleging embezzlement in connection with a healthcare benefit program and tax evasion.

Entering the guilty plea yesterday before United States District Court Judge Gerald E. Rosen on February 5, 2003, was Maurice Adams, age 42, of Detroit, Michigan, formerly the owner of Time Management Group, Inc. and the London Chop House.

Mr. Collins stated that, "The information presented to the court at the time of the plea showed that Mr. Adams, as the owner of Time Management Group, Inc., from around 1992 through the first quarter of 1997, acted as an agent of Mercy Health Services, Inc. [Mercy] in collecting health care insurance premiums from Mercy's corporate clients' employee benefit plans for the purpose of transferring them, on Mercy's behalf, to Mercy and another insurer, First Security. Instead, Mr. Adams converted some of those proceeds to his own use resulting in over $1.5 million in losses to Mercy. In addition, Mr. Adams, during this period, evaded at least $550,000 in personal income taxes by failing to file federal income tax returns and by placing assets purchased with substantial unreported income, derived from his unlawful conversion of the healthcare premiums, in the names of other persons so as to hide the income from the Internal Revenue Service. 

Mr. Collins added that, "Sentencing of Mr. Adams has been scheduled for May 15, 2003, at 10:00 a.m. before Judge Rosen. For these offenses, Mr. Adams faces a statutory maximum penalty of up to ten years in prison and a fine of $250,000. The sentence will be imposed under the United States Sentence Guidelines according to the nature of the offense and the criminal background, if any, of the defendant."

Mr. Collins stated lastly that "This case was investigated by agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. The defendant will remain free on bond pending sentencing."