Preferred Family Healthcare, a Springfield, Mo.-based nonprofit, has agreed to pay more than $8 million to the federal government and state of Arkansas to resolve embezzlement and bribery allegations.
As part of a nonprosecution agreement, Preferred Family Healthcare representatives admitted that former officers and employees of the charity embezzled funds and bribed several elected officials in the Arkansas state legislature, according to an April 1 U.S. Justice Department news release.
Preferred Family Healthcare provides mental and behavioral health treatment and counseling, substance abuse treatment and counseling and employment assistance, among other services. Most of the charity's funding comes from federally appropriated funds, the largest portion being Medicaid reimbursement, according to the news release.
Preferred Family Healthcare is forfeiting more than $6.9 million to the federal government and is paying more than $1.1 million in restitution to the state of Arkansas.
Several former executives from Preferred Family Healthcare, former Arkansas state legislators and others have pleaded guilty to federal charges related to this case, according to the news release.