A Maryland man was sentenced on September 16, 2024, to 21 months in federal prison, followed by two years of supervised release, for conspiracy to commit wire fraud. He was also ordered to forfeit $1,662,732 obtained through the fraud.
According to the plea agreement, the defendant conspired to sell fraudulent nursing diplomas and educational transcripts, assisting individuals in fraudulently obtaining nursing licenses needed for healthcare employment. He owned and operated a nursing school (Nursing School 1), which was not licensed to offer LPN degrees. In addition, many students received RN degrees from Nursing School 1 without attending labs, classes, or completing required clinical assignments.
Between January 2018 and June 2021, the defendant and his co-conspirators recruited potential purchasers in Maryland and beyond, selling them false documents for between $15,000 and $22,000. He also charged around $5,000 to complete online prerequisites. Overall, he generated at least $1,390,332 from these sales.
Between February 2018 and December 2018, the defendant conspired with another individual in Florida to sell false and fraudulent RN degrees from a Florida nursing school (Nursing School 2) to individuals in Maryland and New York. The defendant sent student grades from Maryland to the registrar of Nursing School 2 via interstate wire. In exchange, the defendant received transcripts purportedly from Nursing School 2, despite the individuals not attending the school. When the defendant sold a degree from Nursing School 2, the student paid the school directly. The school then paid the defendant 40 percent of the tuition as a recruitment fee. In total, the defendant received approximately $272,400 from Nursing School 2.
By providing false and fraudulent documents, the defendant and his co-conspirators helped purchasers obtain fraudulent nursing licenses from state licensing agencies, including the Maryland Board of Nursing. This allowed individuals who had not completed the necessary coursework to apply for licensure and practice as nurses. The scheme therefore exposed patients in Maryland and elsewhere to potential harm and the defendant and his co-conspirators consciously and recklessly exposed these patients to the risk of death or serious bodily injury.
Compliance Perspective
Issue
The purpose of a professional license is to protect the public from harm by setting minimal qualifications and competencies for safe entry-level practitioners. Nursing is regulated because it is one of the health professions that poses a risk of harm to the public if practiced by someone who is unprepared and/or incompetent. Boards of nursing established standards for safe nursing care and issue licenses to practice nursing. The selling and purchasing of nursing diplomas and transcripts to willing but unqualified individuals is a crime that potentially endangers the health and safety of patients.
Discussion Points
- Review policies and procedures for verifying the status of professional licenses. Update as necessary.
- Train relevant staff to follow protocols for verification of licenses and certifications of employees at the time of hire and on an ongoing basis to ensure that the licenses remain up to date and are unencumbered. Ensure that training is provided to licensed personnel about their responsibility to maintain an active license and to notify administration should their license be suspended, expire, or if they are added to the US Department of Health and Human Services (HHS) Office of Inspector General’s (OIG) List of Excluded Individuals/Entities (LEIE). Document training sessions and file signed confirmations in each employee’s education file.
- Conduct periodic audits to ensure the licensing and certifications of employees are valid and current. Address any discrepancies immediately and take appropriate corrective actions.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
