Danny Porush was sentenced to 4 years in prison in 1999. The stockbroker was found guilty of securities fraud, money laundering, and insider trading.
Porush was a stockbroker who founded Stratton Oakmont with his partner Jordan Belfort in the late 1980s. The brokerage firm specializes in selling penny stocks and underwriting Initial Public Offerings for small companies. Later on, the firm began to grow notorious after it was subjected to numerous disciplinary actions by the national securities dealer association (NASD) and the Securities and Exchange Commission.
Porush and Belfort practiced the illegal "pump and dump" scheme in the stock market. In December 1996, the NASD permanently expelled Stratton Oakmont and barred Porush along with a fine of $250,000. During the federal investigation, the stockbroker was found guilty of insider trading, perjury, conspiracy, and money laundering, for which he was sentenced to four years in prison. However, the former stockbroker was released on probation after 39 months in 2004.
After serving his jail time, the former broker moved to California with his wife, where he started a medical supply business called Med-Care.
In 2008, a Forbes article exposed the fraudulent tactics used by Porush's company to exploit its customers. The schemes include trying to persuade people to order diabetic supplies and asking them to provide information about their physicians with an immoral intention of using it to bill Med-Care.
Complaints began to arise in Florida, where the aggrieved parties complained that they were being sent unordered packages, followed by unexpected Medicare charges. These events rang an alarm bell in the Federal Bureau, which compelled them to launch an investigation against Med-Care.
On 14 January 2015, the FBI agents, with the help of the Florida fraud department and local police, raided the offices of Med-Care Diabetics & Medical Supplies in Boca Raton.
