A confidential investigation by Fraser Trebilcock lawyers led to the recent conviction and sentencing of the former CEO of a $140 million Mental Health Authority. A judge went above sentencing guidelines to send the man to prison for 2.5 years, following guilty pleas to three Medicaid Fraud felonies, including conspiracy.
The case headlined national news after the CEO admitted using Medicaid funds to pay a psychic in Key West, Florida, under a sham consulting contract. Other CEO misconduct discovered included a $20 million pension plan, created without Board of Directors approval.
The fraud, and other serious misconduct, was uncovered in a year-long confidential investigation by Fraser Trebilcock for the Authority’s Board of Directors, which in turn led to successful prosecution of the executive by the Michigan Attorney General Health Care Fraud Division, and ongoing audits by the Michigan Department of Health and Human Services.
The Fraser team guiding the Board, and conducting the investigation, was led by Fraser Shareholders Jonathan Raven, Max Hoffman, Darrell Lindman, and Mike Cavanaugh. Together, these attorneys used their collective experience across the fields of health care, criminal law, pensions, employment law, and non-profit governance.