Factual Basis — United States v. Mark Mazzare (Eastern District of Texas, Document 19)

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A Factual Basis, Document 19, filed 12/16/24 in Case 6:24-cr-00125-JCB-JDL, United States of America v. Mark Mazzare, M.D., in the United States District Court for the Eastern District of Texas, Tyler Division. In it Mazzare admits conduct described in Count One of the Information, conspiracy to defraud the United States and to purchase, sell, and distribute Medicare beneficiary identification numbers. He states that he owned Mazzare Medical PLLC and Vigilant Healthcare Solutions PLLC, paid Marketing Company 1 approximately $926,000 for beneficiary numbers, and caused tests to be shipped to beneficiaries who had not requested them. He states that Mazzare Medical submitted more than $5.5 million in false claims and that Medicare paid approximately $3.44 million, and he stipulates to a loss of $3,444,750.96 and agrees to forfeiture and restitution in that amount.

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“Factual Basis — United States v. Mark Mazzare (Eastern District of Texas, Document 19).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-6-24-cr-00125-dkt-19-e-d-tex-b39d8bbb60/, SHA-256 bfc2ab0a17ec51f16d815d839d45b413bf45125102b93dccc966aff42f8167bd.

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Case 6:24-cr-00125-JCB-JDL Document 19 Filed 12/16/24 Page 1 of 6 PageID #:
61

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
TYLER DIVISION

UNITED STATES OF AMERICA §
§
v. § NO: 6:24CR_n p
§
MARK MAZZARE, M.D. §
§
FACTUAL BASIS

I, the defendant, Mark Mazzare, M.D., committed the conduct described in Count

One of the Information, which charges a violation of 8U.S.C.§371, conspiracy to defraud

the United States and to purchase, sell, and distribute Medicare beneficiary identification

numbers. I am pleading guilty in this case because I am in fact guilty of the violation

alleged. I have had an opportunity to consult with an attorney, and I am satisfied with the

advice and counsel I have received. I am pleading guilty because I believe it is in my own

strategic best interest based on all the facts known to me, which I have shared with my

attorney. I have reviewed the offense statute and the elements of that offense with my

attorney; I agree that each element is satisfied in this case. I further agree that the following

factual basis is true and correct:

1. From in or around November 2022, and continuing through in or around June

2023, I owned and operated Mazzare Medical PLLC ( Mazzare Medical ) and Vigilant

Healthcare Solutions PLLC ( Vigilant ).

2. Mazzare Medical, Vigilant, and myself, in a personal capacity, were enrolled

as Medicare providers during this time.

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3. By enrolling as Medicare providers, I, through Mazzare Medical and Vigilant,

certified that I would abide by certain federal laws and Medicare regulations, including I

would not submit false or fraudulent claims for payment and that I would abide by the

Federal Anti-Kickback Statute.

4. I, through Mazzare Medical, and Brian Cotugno ( Cotugno ), through

Marketing Company 1, entered into a sham agreement on or about January 19,2023, where

Marketing Company 1, would purportedly generate lead packages for Mazzare Medical,

when in reality, I purchased Medicare Beneficiary Identification numbers (“MBIs ) from

Cotugno.

5. These lead packages consisted of a beneficiary s MBI and an audio

recording that purported to be the voice of the beneficiary requesting over-the-counter

COVID-19 tests.

6. The “lead packages” sold by Cotugno to me contained fraudulently generated

audio recordings. These beneficiaries had not requested that COVID-19 test kits be sent

to them.

7. I paid Marketing Company 1 approximately $926,000 in exchange for MBIs,

and other information, for thousands of Medicare beneficiaries throughout the United

States.

8. I caused over-the-counter COVID-19 tests to be shipped to those Medicare

beneficiaries whose MBIs had been purchased, regardless of whether the Medicare

beneficiaries had requested the tests.

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9. From in or around November 2022 to in or around June 2023, I caused

Mazzare Medical to submit more than $5.5 million in false and fraudulent claims to

Medicare for over-the-counter COVID-19 tests that were medically unnecessary and

ineligible for reimbursement. Medicare paid approximately $3.44 million on those claims.

10. In order to achieve this end, I committed the following acts:

i. On or about November 14, 2022, effective on or about January 19,

2023, Marketing Company 1 and Mazzare Medical entered into a

Business Process Outsourcing ( BPO ) agreement. Per the BPO

agreement, the goal of the Specialty Marketing Program shall be to

generate Raw Leads for Mazzare Medical PLLC, though the price

per raw lead was indicated as TBD.

ii. On or about January 26,2023,1 emailed Billing Company 1 personnel

and asked, “Do you think it is likely Medicare will audit me because

of the increased billing?

hi. On or about January 31,2023, and continuing on or about February 1,

2023, I and Cotugno exchanged text messages about payment in

exchange for MBIs. I texted Cotugno that I “still owe[d] for 500 or

[$]27500 [MBIs] to cover the firs[t] 2000 correct?” and confirmed

Cotugno would “cover costs for the remaining 2,719 MBIs until

“after I get paid by Medicare. Cotugno responded, I have no

problem front loading the deals for you.” I replied, “Thanks so much

for working with me. I want to get to the 6k/ week asap.”

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iv. On or about February 18, 2023, I requested additional MBIs from

Cotugno and I attempted to negotiate a price lower than $55 per MBI,

asking, [a]t some point does the price per patient [g]o down less than

$55? . Cotugno replied, sjorry Doc. It s already up to $63. You

got in before it went up. Already operating at a minimum on your

account.

v. On or about February 18, 2023,1 asked Cotugno if billing 7,000 to

10,000 MBIs is too much per npi” and Cotugno told me that medical

clinics are the least likely to be audited, as compared to pharmacies

that have more oversite” [sic],

vi. On or about February 18,2023,1 and Cotugno discussed claims being

denied “due to billing by another provider. I asked Cotugno, “Will I

get in trouble[?] and “Is this an issue with consents? Cotugno told

me that had “been happening more often now that everyone is in foil

hustle towards the finish line.”

vii. On or about February 24, 2023, I and Cotugno exchanged the

following text messages where I stated that I can do $100k and

thanking Cotugno for his “patients, “[a]nd patience.” I also

expressed I “want[ed] to get to our target of lOk/week and be able to

give you the 550k/week to process it. Are we on track?”

viii. On or about February 24, 2023, I sent or caused to be sent a wire

payment to Marketing Company 1 in the amount of $100,000 in

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exchange for MBIs. The instructions on the wire sent or caused to be

sent by me indicated MEDICAL SUPPLIES.

ix. On or about April 16, 2023, I sent an e-mail to Billing Company 1,

and others, with an attachment consisting of 18 pictures of returned

over-the-counter COVID-19 tests. Some of the labels were marked

“REFUSED, “RETURN TO SENDER,” “NOT AT THIS

ADDRESS, or had the Medicare beneficiaries addresses crossed

out.

I hereby stipulate that these facts are true and correct. I accept these facts as the

uncontested facts of this case. I acknowledge that my conduct as described above

constitutes a violation of the charged offense.

I stipulate and agree that I am personally responsible for a loss to Medicare in an

amount of $3,444,750.96, which represents the loss resulting from the offense alleged in

Count One of the Information and relevant conduct; I agree that the court should order

forfeiture in this amount and order me to pay restitution in this amount to the victim of my

conduct.

(Continued on the next page.)

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Dated: I [ Zg

I am counsel for the defendant. I have reviewed this Factual Basis with the
defendant. Based on these discussions, I am satisfied that he understands the terms and
effect of the Factual Basis and that he signed it voluntarily.

Dated:
LOUIS LEICHTER
Attorney for Defendant

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