Man pleads guilty in fraud linked to Kansas City company

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KANSAS CITY, Mo. (AP) — An Indiana man has pleaded guilty to participating in a multimillion dollar fraud scheme that included impersonating employees of a Kansas City-based company.

The Kansas City Star ( ) reports that 54-year-old David Hernon entered a guilty plea in U.S. District Court Monday to charges that he conspired to commit wire fraud. Prosecutors claim Hernon and three others created dozens of companies with the intent to impersonate actual companies such as Cerner Corp. in Kansas City.

Prosecutors say the scheme began taking shape in 2008.

According to prosecutors, the participants in the scheme solicited more than $6 million in investments from dozens of doctors and engineered the sale of a $1 million MRI system to a Dallas hospital. Authorities say the hospital learned of the fraud after contacting Cerner Corp. for help installing the system.

Prosecutors also say that the defendants registered Internet domains similar to those of existing companies, and used fake employee identities to communicate with investors, conduct business transactions and manipulate court proceedings.

The three other defendants in the case have pleaded guilty in the case as well.

They each face up to 20 years in prison and fines of up to $250,000.

Sentencing dates have not yet been scheduled.


Information from: The Kansas City Star,

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