East Amherst Man Indicted on Fraud and False Statement Charges

December 15, 2011 Updated Dec 15, 2011 at 6:54 PM EDT

By WKBW News

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East Amherst Man Indicted on Fraud and False Statement Charges

December 15, 2011 Updated Dec 15, 2011 at 6:54 PM EDT

Buffalo, N.Y. (WKBW release) -- U.S. Attorney William J. Hochul, Jr. announced Thursday that a federal grand jury in Buffalo returned a five-count indictment charging Marc Irwin Korn, 54, of East Amherst with wire fraud and making false statements to law enforcement.

The charges carry a maximum penalty of  20 years in prison, a fine of $250,000 or both.

Assistant U.S. Attorney Gretchen L. Wylegala, who is handling the case, stated that according to the indictment, Korn engaged in two different schemes to obtain money. Korn is alleged to have taken for personal use, over $150,000 of money donated to the American Friends of Assaf Harofeh Medical Center, while serving as an officer of that charity. The charity was founded in 1975 and is designed to raise funds for a medical center located in Israel.
       
The indictment further alleges Korn caused over $167,000 from nursing home equipment leasing agreements to be deposited into a bank account in the name of  one of his business entities, Health Care Alliance, Inc. Those funds were used for personal expenses, including salon visits, college tuition, clothing, and antiques.   

Korn is also accused of making false statements to investigating agents during a June 2010 interview. According to the Indictment, Korn told agents the deposits into Health Care Alliance were commissions.