Outpateint Facilty Investment Scheme Update: Ongaro, Marshall

Two more men, including a Dallas area radio executive based in the, have been indicted with seven others on charges of mail fraud, conspiracy and money laundering in connection with an outpatient facility business opportunity they championed.^[1] We have previously discussed this case here.

Brian Ongaro of Frisco, executive vice president/Western region for CBS Radio, and Raymond Marshall of Frisco were indicted along with David Goldfarb, Richard Ross; Paul Woodcock; Milton Guenther; James Bonebrake; Colin McHale, and Mike Ibler.^[2] Prosecutors allege that the men used paid referrals to intentionally misrepresent the quality of their company, CORF Licensing Services, by understating the costs and risks involved, including patient activity, potential income and profit.^[3]

Prosecutors asserted that between 2001 and 2003, Goldfarb, Ross, Woodcock and Guenther, contracted with more than 300 licensees to establish outpatient facilities that mainly provided pulmonary respiratory therapy and physical therapy services; the concept was marketed through internet websites, ads and seminars where they grossly misrepresented the financial benefits of owning and operating the facilities.^[4]

If convicted of mail fraud, the individuals could face up to 20 years in prison and a $250,000 fine. A conviction of money laundering carries up to 20 years in prison and a $500,000 fine; conspiracy carries up to five years in prison and a $250,000 fine.^[5]

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^[1] Local CBS exec indicted in money laundering scheme, Dallas Business Journal, March 22, 2007
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.