GREENEVILLE, TN (WJHL) – Two people face charges following an investigation into mail fraud at Mountain Empire Surgery Center (MESC) in Johnson City.
According to federal court documents, Kevin Collins and Charles Turner have been charged with one count of conspiracy to commit mail fraud and 15 counts of mail fraud.
In the documents, Collins worked for MESC as the materials manager. Collins reportedly enlisted Turner’s help with the alleged criminal activity by making him believe that they were operating a legal business operation. Turner became aware that he was involved in the criminal conspiracy in April 2010.
According to the court document, Collins and Turner devised a plan to defraud or obtain money or property fraudulently from MESC.
The pair reportedly agreed to create a medical supply company called Turner Distributors LLC to allow them to carry out the scheme.
Additionally, Collins and Turner opened bank accounts at Carter County Bank in the name of Turner Distributors, as well as created fraudulent purchase orders, invoices and packing slips for supplies that were never going to be delivered to MESC.
According to the documents, from April 15, 2010 to March 8, 2016, Collins created hundreds of fraudulent purchase orders, packing slips and invoices that falsely claimed that MESC had received around $1.3 million in medical supplies from Turner Distributors.
Collins was arrested on Aug. 9 and had his initial appearance and arraignment in Greeneville federal court Thursday, where he pleaded not guilty to the charges.
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