The former chief operating officer of Wedgewood Physicians Inc., as well as a former physician, are facing federal bank fraud charges after authorities say they stole more than $650,000 from the medical practice.
According to the indictment, from approximately January 2016 to around November 2018, Francisco Ortiz, 48, of Vacaville, Calif., used his position as COO to divert funds for his personal benefit and the benefit of former Wedgewood physician James Brooks Mersing, 35, of Morgantown.
Ortiz allegedly issued checks to himself that then were deposited into his personal accounts in the form of unauthorized payments designated as continuing medical education, bonuses, student loan repayments, hourly compensation in addition to salary, and for personal time off and general personal expenditures and benefits.
Court documents show the amounts of the unauthorized payments ranged from $76, which Ortiz used for Amazon purchases, to $30,000, in the form of an authorized bonus.
The indictment states Ortiz also issued several inflated bonus checks to Mersing, which only a portion of was legitimate, as well as handwritten checks and unapproved payroll payments.
After receiving the payments, Mersing allegedly returned a portion of the money to Ortiz as a kickback.
Approximately $650,000 was stolen by Ortiz and around $84,397 by Mersing, according to the indictment.
“White-collar crime costs the United States hundreds of billions of dollars each year,” said United States Attorney William Ihlenfeld. “The Department of Justice will continue to pursue white-collar wrongdoers and hold them accountable for their misconduct.”
Ortiz faces 31 counts of bank fraud and Mersing faces 11 counts. The men could face a penalty of up to 30 years in prison for each count and may be required to pay back the money.
The case was investigated by the Federal Bureau of Investigations and Assistant U.S. Attorney Sarah Wagner is prosecuting on behalf of the government.
Mersing is scheduled for an initial appearance hearing March 31 in Clarksburg before Magistrate Judge Michael John Aloi.
Ortiz was arrested by the FBI on Tuesday. Future court dates are pending.
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