Former Chief Operating Officer of Ohio Hospital System Sentenced to Over 15 years for Conspiracy Involving Series of Bribes and Kickbacks
The former Chief Operating Officer (COO) of an Ohio Hospital System was sentenced to more than 15 years in federal prison for his role in a conspiracy to defraud the hospital and others through a series of bribes and kickbacks totaling hundreds of thousands of dollars related to the hospital’s dental program. Restitution will be determined at a later date.
A jury previously found the defendant and three others guilty of criminal charges following a trial last year. The other three defendants are scheduled to be sentenced later this month.
The defendant worked in various capacities at the hospital, including as Chief Operating Officer and Director of the Dental Department at the hospital. He also served as interim President and Chief Executive Officer from December 2012 through July 2013. The other three convicted defendants are dentists who worked for the hospital’s dental department.
Three of the four were engaged in a racketeering conspiracy from 2008 through 2016 involving a series of elaborate bribery conspiracies, witness tampering, and other crimes. These bribes include soliciting cash, checks, and other items of value, including the use of a downtown apartment. The former COO allowed the dentists to work at their private dental businesses during regular business hours while receiving full-time salaries from the hospital system.
The conspiracy also involved the hospital system’s dental residency program where candidates were selected from a Jordanian dental school and required to pay a “donation” to be considered for admission to the program.
The co-conspirators obstructed justice by instructing people not to cooperate with law enforcement.
The former COO made false statements on tax returns, failing to claim about $165,751 in unreported income stemming from bribes, kickbacks and other items of value between 2011 and 2013.
Compliance Perspective
Knowingly accepting and/or offering cash or other items of value with the purpose of defrauding a healthcare provider and for personal gain is a violation of the Anti-Kickback Statute.
Discussion Points:
- Review policies and procedures prohibiting accepting or paying cash or giving/receiving items of value in exchange for services.
- Train staff about the Anti-Kickback Statute and the facility’s policies and procedures regarding accepting gifts.
- Periodically audit by interviewing residents and staff to learn of any offers, solicitation of gifts, or items they may have given or received in violation of facility policies and the Anti-Kickback Statue.
