Suspect sentenced for role in telemarketing fraud scheme
A defendant who previously admitted running a “work-at-home” telemarketing fraud scheme that caused thousands of victims to lose more than $16 million has been sentenced to 78 months in federal prison.
United States District Judge R. Gary Klausner sentenced Matthew Craig Rubin, 46. In addition to the six-and-a-half year prison term, Klausner ordered Rubin to pay a $16 million judgment to victims of the fraud.
Rubin — along with his brother, Andrew Rubin — ran Medicor, LLC, a marketing company that deceived customers into believing that the customers could set up home-based medical billing businesses. Matthew Rubin and his brother created a scheme to defraud consumers who purchased medical billing software, in part by making false claims about customers receiving a list of doctors who needed medical billing services.
Between July 1999 and March 2001, Medicor sold more than 30,000 Kwic-Claim Medical Billing Software packages for approximately $400 each. Only 65 people were able to successfully bill using Medicor software.
In September 2005, Matthew Rubin pleaded guilty to two counts of money laundering and one count of witness tampering, admitting that he laundered the proceeds of the telemarketing fraud scheme through foreign bank accounts. Matthew Rubin also admitted that he persuaded the former controller of his company to lie in the Federal Trade Commission case against him and his company.
In 2006, Andrew Rubin pleaded guilty to two counts of money laundering. He was later sentenced to three years in prison and three years of supervised release. Two weeks ago, Judge Klausner sentenced Andrew Rubin to another year in prison for violating the terms of his supervised release.