Paul D. Cardwell, the former CEO of Powell (Wyo.) Valley Healthcare, has denied allegations by hospital management that he embezzled roughly $848,000 from the system, according to a Powell Tribune report.
HealthTech Management Services, the system's management company, claims Mr. Cardwell funneled the money to a friend in Indiana, Michael Plake, who purportedly used those funds for a limited liability company that recruited medical staff for Powell.
Federal investigators claim Mr. Plake did not actually perform recruitment activities, however, and kicked nearly 75 percent of the hospital funds back to Mr. Cardwell while keeping 25 percent for himself. The alleged payments from Mr. Cardwell to Mr. Plake were made through checks written from April 2011 to September 2011.
The allegations have been investigated by the U.S. Postal Service and the FBI. HealthTech's civil lawsuit is based on the same allegations that make up the federal criminal charges and seeks unspecified damages.
The two men each face 15 felony counts of fraud. Both have pleaded not guilty to the charges. A trial is set for June 4.
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HealthTech Management Services, the system's management company, claims Mr. Cardwell funneled the money to a friend in Indiana, Michael Plake, who purportedly used those funds for a limited liability company that recruited medical staff for Powell.
Federal investigators claim Mr. Plake did not actually perform recruitment activities, however, and kicked nearly 75 percent of the hospital funds back to Mr. Cardwell while keeping 25 percent for himself. The alleged payments from Mr. Cardwell to Mr. Plake were made through checks written from April 2011 to September 2011.
The allegations have been investigated by the U.S. Postal Service and the FBI. HealthTech's civil lawsuit is based on the same allegations that make up the federal criminal charges and seeks unspecified damages.
The two men each face 15 felony counts of fraud. Both have pleaded not guilty to the charges. A trial is set for June 4.
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