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Medical equipment seller nabbed for evading $2.4 million in taxes

The seller established a trust and funneled profits into it, using the funds to pay personal expenses, DOJ says.
By Jeff Lagasse , Editor
Judge banging gavel
Photo: Chris Ryan/Getty Images

A Florida man has been sentenced to two years in federal prison for evading nearly $2.4 million in taxes on income he earned from selling medical equipment.

According to documents and statements made in court, Roger Whitman manufactured and sold Rife machines – devices that use energy waves to purportedly treat a wide range of medical conditions – and generated millions of dollars in gross receipts from the sale of this equipment between 2002 and 2018.

The Department of Justice added that Whitman has a long history of avoiding paying taxes, having not filed an individual income tax return since 1997 and not made any tax payments since 2000.

In 2012, the IRS assessed nearly $800,0000 in taxes against Whitman for 2002 through 2009 and then began trying to collect these taxes. To thwart the IRS's collection efforts, Whitman allegedly formed a trust, with his girlfriend serving as the trustee.

Whitman then directed his income from the business into the trust's bank accounts and used the funds from these accounts to pay personal expenses. Whitman formed a new entity to operate his business around July 2019.

Through his actions, Whitman caused a tax loss to the IRS of more than $2.4 million, the DOJ said.

THE LARGER TREND

Whitman, 76, entered a guilty plea in August 2024, according to NBC6 in South Florida.

In addition to his prison sentence, U.S. District Judge John Antoon II for the Middle District of Florida ordered Whitman to serve one year of supervised release and pay $2.3 million in restitution to the IRS.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.