Five former executives of Tampa-based WellCare Health Plans have been indicted for allegedly defrauding the Florida Medicaid program by producing false documents to inflate the costs of behavior health services, according to an MSNBC report.
The former executives indicted are CEO Todd Farha; general counsel Thaddeus Bereday; CFO Paul Behrens; vice president of Harmony Behavioral Health, a WellCare subsidiary, William Kale; and vice president of medical economics Peter Clay.
The alleged fraud took place from July 2003 through Oct. 2007. More than 200 federal agents raided the company's headquarters in Oct. 2007 and Mr. Farha, Mr. Behrens and Mr. Bereday left the company several months later.
WellCare reached a preliminary settlement with the U.S. Department of Justice to settle allegations for $137.5 million. A former WellCare financial analyst and whistleblower against the company is contesting the settlement.
Actual damages from the fraudulent activity may be close to $400 million, according to the report.
Read the MSNBC report on WellCare.
Read more about Medicaid fraud:
- Former Johnson & Johnson Employee Files Whistleblower Suit Alleging Medicaid Fraud
- New York's APS Healthcare Pays $13M to Settle False Claim Allegations
The former executives indicted are CEO Todd Farha; general counsel Thaddeus Bereday; CFO Paul Behrens; vice president of Harmony Behavioral Health, a WellCare subsidiary, William Kale; and vice president of medical economics Peter Clay.
The alleged fraud took place from July 2003 through Oct. 2007. More than 200 federal agents raided the company's headquarters in Oct. 2007 and Mr. Farha, Mr. Behrens and Mr. Bereday left the company several months later.
WellCare reached a preliminary settlement with the U.S. Department of Justice to settle allegations for $137.5 million. A former WellCare financial analyst and whistleblower against the company is contesting the settlement.
Actual damages from the fraudulent activity may be close to $400 million, according to the report.
Read the MSNBC report on WellCare.
Read more about Medicaid fraud:
- Former Johnson & Johnson Employee Files Whistleblower Suit Alleging Medicaid Fraud
- New York's APS Healthcare Pays $13M to Settle False Claim Allegations