Four More Sentenced for $19 Million Fraud Scheme
Conspirators Impersonated Cerner Corporation
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that four more defendants were sentenced in federal court today for their roles in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in business and legal activities.
David Tayce, 67, of Lucas, Texas; David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas); and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Tayce was sentenced to six years and six months in federal prison without parole and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison without parole and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
Albert Davis, 56, of Richardson, Texas, was sentenced yesterday to 12 years in federal prison without parole for leading the conspiracy. The court also ordered Davis to pay $19,151,555 in restitution to the victims of his fraud scheme.
Each of the defendants pleaded guilty, in separate but related cases, to participating in a conspiracy to commit wire fraud from Aug. 25, 2008, to Feb. 19, 2015. Conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor. According to court documents, Davis functioned as the leader and CEO. Tayce functioned as the CFO or number two defendant in the scheme. Hernon functioned as a COO or manager in the scheme. The Bryants were employees of Davis and had a smaller role in the scheme.
The decade-long criminal conduct, including relevant conduct from several other jurisdictions, involved perjured testimony, doctored trial exhibits, a manipulated multi-million dollar civil verdict, a fake bankruptcy filing, the use of fake people with fake email accounts, impersonated companies and a phalanx of over 70 entities to conceal it.
In order to impersonate Cerner Corporation, Davis and his co-conspirators created a fake Cerner business entity for a similarly-named company, Cerner, LLC. Conspirators opened a fake Cerner bank account, registered a fake Cerner Internet domain and leased virtual office space for a fake Cerner address in Kansas City, Mo. They created fictitious employees from Cerner Corporation – including both fictitious identities and impersonating actual employees – to communicate with others. Conspirators fabricated documents, price quotes, agreements and invoices, which were all made to appear to be authentic Cerner Corporation documents, when they were not.
In addition to impersonating Cerner Corporation, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
These cases were prosecuted by Assistant U.S. Attorney Matthew P. Wolesky, in cooperation with Assistant U.S. Attorney Nathaniel Kummerfeld of the Eastern District of Texas and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas. They were investigated by the FBI.