WASHINGTON - Robert E. Alick, the operator of a used medical equipment sales business and resident of Chagrin Falls, Ohio, pleaded guilty Tuesday to five counts of mail fraud, one count of wire fraud, and one count of corruptly endeavoring to obstruct the administration of the Internal Revenue laws, the Department of Justice and Internal Revenue Service (IRS) announced.

According to the indictment and the plea agreement, Alick operated his used medical equipment sales business in Beachwood, Ohio, through the following entities: Healthcare Imaging Solutions Corporation, ECT Medical Systems Inc., ECT Corporation, Second Source Medical Equipment Corporation and Computer Remarketing Credit Corporation d/b/a DECT Imaging. Alick also admitted that he used this series of corporations both as part of his fraudulent scheme (described below) and to avoid paying taxes.

As reported in DOTmed News, the 2007 charges in the case were the result of a two-year investigation by the Cleveland office of the FBI that first came to light in DOTmed.com forum discussions in which customers warned other customers about Alick.
According to Tuesday's indictment and the plea agreement, Alick admitted that in connection to the mail and wire fraud counts, from July 2002 through April 2006, he engaged in a scheme to defraud the hospitals that were his customers through various means, including: taking substantial deposits that were supposed to be used to purchase medical equipment and failing to use such funds for the purchase of the equipment, and failing to deliver the equipment, instead using the money on other things. Alick further admitted that he defrauded the following six hospitals: Toledo Hospital (Toledo, Ohio), Greene County Medical Center (Jefferson, Iowa), Canyon Surgery Center (Phoenix), North Suburban Surgery Center (Thorton, Colo.), Clarion Hospital (Clarion, Penn.) and Hugh Chatham Hospital (Elkin, N.C.).

According to the indictment and the plea agreement, Alick admitted that in connection with the tax crime, in addition to operating his business through a series of corporations, he engaged in an array of other activities to obstruct and impede the IRS. For instance, he admitted that although he caused his corporations to file quarterly employment tax returns from 2000 through part of 2003, he failed to cause them to file such returns from the end of 2003 through 2006. In addition, he admitted that during both periods, he caused these corporations not to pay over the employment taxes that they owed. Alick also admitted that he collected employment taxes from some employees, but not others.

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