- Suresh Mitta of Richardson, Texas has been convicted in a federal jury trial of impersonating Cerner Corporation in a $19 million health IT fraud scheme, according to an announcement from the Western District of Missouri’s Department of Justice.
Mitta was found guilty of a single count of conspiracy to commit wire fraud, following a November 2016 federal indictment. Mitta was the Chief Technology Officer (CTO) for several entities owned and operated by co-conspirator Albert Davis.
The two adopted Cerner’s reputation in the health IT sphere to manipulate business transactions and court proceedings in their favor. Several victims suffered millions of dollars in losses as a result. Mitta and Davis acquired funds from victims from August 2008 to February 2015.
The two created a fake Cerner business entity for a similarly named company — Cerner, LLC — 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, Missouri.
Furthermore, the duo created false employees from Cerner Corporation by inventing fictitious identities and impersonating actual employees to communicate with clients. Mitta and Davis also fabricated documents, price quotes, agreements, and invoices on documents intended to appear to belong to Cerner Corporation.
The men used this fabricated identity to fraudulently sell a purportedly new MRI system to Dallas Medical Center (DMC). DMC paid over $1 million to the false company.
Evidence entered into the trial showed that Mitta impersonated a Cerner employee and represented himself as the company’s senior physicist in meetings with the DMC President and his attorneys.
The two men created fake e-mail accounts for Dallas cardiologists to draft e-mails expressing the cardiologists’ urgency to receive the MRI system when DMC was slow to act on the deal.
Assistant US Attorneys Matthew P. Wolesky and Paul S. Becker prosecuted Mitta, and a trial jury indicted the two of criminal conduct including perjured testimony, doctor trial exhibits, manipulated multi-million dollar civil verdict, use of fake people with fake email accounts.
Mitta and Davis were also charged with impersonating companies, inventing fake business documents, and a phalanx of over 70 entities with more than 50 bank accounts.
The duo also provided false references to DMC to prove the legitimacy of their product. These references were also fictitious doctors played by the conspirators.
The two men sued DMC when the medical center learned of the fraud. During litigation for the lawsuit, Mitta and Davis provided false and misleading information and testimony.
The two also brought a law suit against Korean company ISOL Technology, receiving a jury award of $24 million in the 2014 trial. Upon discovering the company had been a fraud, ISOL Technology filed an emergency motion for sanctions against the false company.
Throughout the fraud scheme, Mitta and Davis also solicited investments using fabricated communications and documents from fictitious entities. The two created false financial documents, altered MRI images, and false claims that the MRI systems were newly-developed technology.
Ultimately, the Mitt and Davis solicited millions of dollars in investments from physicians and other investors.
Davis was sentenced to 12 years in federal prison on April 24, 2017. Davis was also required to pay over $19 million in restitution to victims of the fraud scheme.
After two hours of deliberation, a jury found Mitta guilty on May 7, 2018. Chief District Judge Greg Kays oversaw the trial in the Kansas City US District Court.
Mitta could serve up to 20 years in federal prison without parole.