Adrian Resident Pleads Guilty to Health Care Fraud and Filing a False Tax Return

The operator of a human resources company pleaded guilty to health care fraud and filing a false tax return, announced U.S. Attorney Barbara McQuade.

Ms. McQuade was joined in the announcement with Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office and Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office.

Jason Syrek, age 39, of Adrian, pleaded guilty before United States District Judge Paul D. Borman on May 15, 2013.

According to court records, between May 2008 and December 2010, Syrek engaged in health care fraud and tax fraud while operating CAS Resources of Adrian, Michigan. CAS Resources provided outsourcing of human resource services, such as payroll, taxes and employee benefits administration, including health care coverage.

CAS collected $1.75 million in premiums from client companies in November and December 2010, an amount due to Blue Cross Blue Shield of Michigan (BCBSM), but never paid by Syrek. He admitted diverting these funds for personal use.

According to the plea agreement, in January, 2011, Syrek as the director of CAS Resources, filed a Form 941 for 2010: Employer’s Quarterly Federal Tax return for the third quarter. The Form 941 was filed with the IRS and stated that CAS Resources paid $1,862,902 in payroll taxes. Syrek knew he had diverted these funds for his own personal use and only paid $633,332 in payroll taxes. In addition to the third quarter Form 941 for 2010, Syrek filed approximately seven other Form 941s with the IRS which he did not pay. In total, from 2010 through 2011, Syrek’s tax due is $13.4 million.

Syrek used the money to buy beachfront properties, several cars, a boat, and investment properties. In order to pay his debt, Syrek will forfeit his homes, beach properties in Florida, 2009 32.5’ Sea Ray Boat, and cars, to include a 2008 Ferrari F430 and 2008 Porsche Boxster.

“Fraud schemes like this one may involve sophisticated methods, but they are nothing more than stealing. This defendant robbed health care programs and taxpayers for his personal benefit,” McQuade said.

“Syrek’s conduct was egregious in that he effectively stole funds that were withheld on behalf of employees,” said Erick Martinez. “His actions cost the government $13.4 million dollars in tax loss alone.”

“Those who commit health care fraud and other related crimes will face severe penalties for their illegal acts,” stated FBI Special Agent in Charge Foley. “The FBI is committed to working with the IRS and other agencies to bring these individuals to justice.”

Sentencing is scheduled for August 13, 2013. Syrek faces a maximum sentence of 87 months’ imprisonment under the terms of the plea agreement, which was taken under advisement by the court, and a fine of up to $250,000. In addition, Syrek has agreed to pay restitution in the amount of $1,754,922.98 to BCBSM and $13,405,212 to the IRS.

This case is being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Linda Aouate and investigated by special agents of the IRS Criminal Investigation and the FBI.