A lawyer and his client, the former owner of the now-defunct Edgewater Hospital in Chicago, have been indicted on federal charges that they committed perjury and obstruction of justice, according to a news release from the Federal Bureau of Investigations.
Attorney Frederick M. Cuppy and former Edgewater CEO and owner Peter G. Rogan allegedly performed fraudulent activity to thwart efforts by the government and a bank creditor to collect civil judgments totaling $188 million.
The government claims that from 2002-2010, Mr. Rogan and Mr. Cuppy conspired to impede collection efforts through the use of off-shore bank accounts, which they allegedly misrepresented. The government claims this is what eventually resulted in Edgewater's collapse.
Edgewater Hospital closed in Dec. 2001 and entered bankruptcy in 2002, around the same time four physicians, a vice president and the management company pleaded guilty to federal criminal healthcare fraud charges involving the payment of kickbacks for patient referrals and medically unnecessary hospital admissions and services.
Mr. Cuppy and Mr. Rogan were each charged with one count of conspiracy to obstruct justice. Mr. Cuppy was also charged with three counts of perjury and three counts of obstruction of justice. Mr. Rogan was also charged with two counts of perjury and one count of obstruction of justice.
Ohio Valley Health System Sues Former CEO for Hiding Operating Losses From Board
Former General Counsel of Children's Hospital of Philadelphia Pleads Guilty to Embezzlement
Attorney Frederick M. Cuppy and former Edgewater CEO and owner Peter G. Rogan allegedly performed fraudulent activity to thwart efforts by the government and a bank creditor to collect civil judgments totaling $188 million.
The government claims that from 2002-2010, Mr. Rogan and Mr. Cuppy conspired to impede collection efforts through the use of off-shore bank accounts, which they allegedly misrepresented. The government claims this is what eventually resulted in Edgewater's collapse.
Edgewater Hospital closed in Dec. 2001 and entered bankruptcy in 2002, around the same time four physicians, a vice president and the management company pleaded guilty to federal criminal healthcare fraud charges involving the payment of kickbacks for patient referrals and medically unnecessary hospital admissions and services.
Mr. Cuppy and Mr. Rogan were each charged with one count of conspiracy to obstruct justice. Mr. Cuppy was also charged with three counts of perjury and three counts of obstruction of justice. Mr. Rogan was also charged with two counts of perjury and one count of obstruction of justice.
Related Articles on Hospital Executives and Fraud:
Federal Prosecutors Allege Former MediSys CEO Tried to Bribe New York Officials for Favorable TreatmentOhio Valley Health System Sues Former CEO for Hiding Operating Losses From Board
Former General Counsel of Children's Hospital of Philadelphia Pleads Guilty to Embezzlement