U.S. Attorney Justin E. Herdman announced Friday a Westlake man was indicted for conspiring with others to defraud the Cleveland Clinic out of $2.8 million.
William Rizk was employed as Chief Technology Officer at Interactive Visual Health Records, a Cleveland Clinic company. Gary Fingerhut, former executive director at Cleveland Clinic Innovations, hired and conspired with Rizk to defraud Cleveland Clinic, according to court documents.
Fingerhut and Rizk were prohibited from having any personal financial interests in companies that did business with the Cleveland Clinic. They were also prohibited from receiving any benefits from those companies.
Rizk and others created a shell company, iStarFZE LLC, with a mailing address in New York City. The shell company was created to give a false impression that it was a fully operational business.
ISTAR submitted a bid to the Cleveland Clinic to design and develop Interactive Visual Health Record’s software. To avoid detection, Rizk paid Fingerhut a “commission” fee.
“This defendant was hired to help develop advanced medical technology and instead defrauded the Cleveland Clinic out of millions of dollars,” Herdman said in a statement. “We will continue to aggressively prosecute corruption and self-dealing.”
Rizk stole approximately $3 million from Cleveland Clinic.