Texas Man Sentenced to 12 Months and 1 Day for His Role as Executive National Marketing Director in Operating Sham Medical Reimbursement Account Program | USAO-EDLA

NEW ORLEANS – This was reported by US Attorney Duane A. Evans JOSEPH ANTHONY BORINO, 65, of Spring Hill, Texas, was sentenced on November 1, 2022 by U.S. District Judge Wendy B. Sentenced to 12 months and 1 day in prison by Witter after pleading guilty to a bill that dismissed one count of information charges. charged him with a felony, namely wire fraud, in violation of 18 USC § 4 for his role in an extensive scheme to defraud thousands of individuals and companies across the United States. Judge Witter also handed down the sentence BORINO ordered to serve one (1) year of supervised release upon release and to pay a mandatory special assessment fee of $100. Judge Witter set a hearing for February 13, 2023 at 10:00 a.m.

According to court documents, The Total Financial Group (TTFG) was a Louisiana business incorporated on January 6, 2005 by Denis and Donna Joachim with the Louisiana Secretary of State. TTFG was most recently located in Covington, Louisiana and had at least 13 employees. and 56 independent sales agents. BORINO, has been with TTFG since 2012, serving as its National Executive Marketing Director. In that capacity, BORINO Supervised, coached and trained TTFG’s regional sales staff. BORINO primarily addresses and resolves issues faced by agents, prospective clients and registered clients.

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Together with TTFG and its owners BORINO and others created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 argued that it is a multi-employer welfare agreement that provides employers with a fringe benefits plan to reimburse their employees for medical expenses, such as copayments and deductibles. Classic 105 participants are required to have a primary health insurance plan that is separate from and in addition to Classic 105. The Classic 105 is claimed to consist of several components: a tax-free contribution by the employee of between $1,000 and $1,600 per month (which reduces the Employee’s taxable income), a loan from the lender to the employee to repay the contribution, an insurance policy that pays to pay off the loan upon the employee’s death, and fees paid directly by the employee and the employer. TTFG. TTFG told prospective employer clients that participants would never have to make out-of-pocket payments to repay the loan, and that the tax savings would increase most participants’ take-home pay. The TTFG marketing program told prospective employer-clients that contributions are held in a unique account for each participant-employee and that unused funds are returned to TTFG by the end of each calendar year. TTFG also charged participating employees between $150 and $250 per month, and five percent of each employee’s contribution to the employer. At its peak, more than 350 employer-clients and 4,400 employee-participants enrolled in TTFG’s Classic 105 program.

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According to court documents, TTFG was fraudulent in how it actually operated the Classic 105. TTFG never took out any loans or insurance policies for the Classic 105 program, and participants never made any actual contributions. There were only tender contributions to the TTFG by employer-clients and employee-participants. As a result, participants-employees and employer-clients were tricked into enrolling in and paying fees for the Classic 105 program through false pretenses, representations, and promises. Additionally, participants and employers face potential adverse financial consequences, including unpaid taxes, fees, and penalties, as well as ineligibility for certain government programs, including unemployment benefits and reduced Social Security benefits.

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Despite being aware of these incidents that constitute wire fraud on several occasions, BORINO tried to hide the information without disclosing it. For example, in September 2014 BORINO “TTFG has not entered into any agreement with any bank in any state,” it said, and also “has not solicited or [sic] received any pooled funds from a group of individuals”. When asked by subordinates in the following months BORINO Asking specific questions about the credit component, Classic 105 raised concerns about “fraud and illegal tax evasion”. BORINO He did not disclose that the entities that gave loans said no. In the following years, BORINO continued to indicate that loans to employees and prospective clients from “Wall Street banks,” community banks, and various “investment vehicles” funded the credit component. During his sentence BORINOJudge Witter noted the high level of his TTFG organization, which was “based on nothing but fraud.”

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