Former WellCare Health Plans CEO Todd Farha and the Tampa, Fla.-based company's former CFO Paul Behrens have until May 1 to pay a combined $26 million in civil payments and restitution for their involvement in a healthcare fraud scheme, according to the Tampa Bay Business Journal.
Mr. Farha and Mr. Behrens were two of five WellCare executives indicted in 2011 for allegedly defrauding Florida's Medicaid program by producing false documents to inflate the costs of behavioral health services. Federal prosecutors alleged the former CEO and CFO engaged in the Medicaid fraud scheme from July 2003 through October 2007.
In June 2013, a federal jury in Florida found Mr. Farha and Mr. Behrens guilty on two counts of healthcare fraud. Mr. Behrens was also found guilty on two counts of making false statements related to healthcare matters.
Both of the former executives entered into consent judgments with the Securities and Exchange Commission, which require them to pay restitution and civil penalties stemming from the healthcare fraud scheme, according to the Tampa Bay Business Journal.
As part of the consent judgment, Mr. Farha, who is currently serving a three-year prison term, must pay $12.5 million to the SEC and another $7.5 million to WellCare. He's also barred from serving as an officer or director of a public company until April 2022.
Mr. Behrens, who is serving two years in prison, must pay $4.5 million to the SEC and another $1.5 million to WellCare as part of the consent judgment.
The former executives' payment deadline of May 1 comes just one week after the U.S. Supreme Court declined to hear an appeal by Mr. Farha of his 2013 conviction, according to Reuters.
More articles on legal and regulatory issues:
Shuttered NC hospital's settlement over improper layoff notifications receives preliminary approval
How technology can help hospitals base malpractice reserves on more than a gut feeling
Michigan hospital pays $791k to resolve false billing allegations