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This is an archive article published on October 1, 2005

‘Indian couple faces five years in prison for fraud

An Indian origin couple faces five years in prison and a $250,000 fine for duping various groups of employees in a health scheme fraud worth...

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An Indian origin couple faces five years in prison and a $250,000 fine for duping various groups of employees in a health scheme fraud worth thousands of dollars.

On Thursday, a federal jury in Greenbelt, a Washington suburb in Maryland, convicted Maruthi S Manney (47) and his wife Lakshmi (45) who ran a health benefits plan after they failed to pay for the medical care of clients that included school districts and business employees in East Texas.

Maruthi Manney was convicted on one count of wire fraud and eight counts of mail fraud, while his wife was convicted of mail fraud but acquitted on the wire fraud charge. Prosecutors said the Maryland-based couple routinely processed claims and printed cheques but failed to mail them out. Manney invested $500,000 from plan funds in another venture, used $12,000 for a holiday party and spent roughly $7,000 on tickets for football matches. ‘‘The victims paid for health insurance coverage that Maruthi Manney and Lakshmi Manney never intended to provide,’’ Attorney Rod J. Rosenstein said in a statement.

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