Ex-leaders of troubled care centre charged with money crimes - InfoNews

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Ex-leaders of troubled care centre charged with money crimes

September 02, 2020 - 4:56 PM

PHOENIX - Two former executives from an Arizona care facility where an incapacitated woman was raped have been indicted on financial charges, Attorney General Mark Brnovich announced Wednesday.

Former Hacienda HealthCare CEO Bill Timmons and Chief Financial Officer Joseph O’Malley bilked the state out of millions of dollars through fraudulent billing practices over a six-year period, using the money to boost salaries and benefits, state prosecutors allege.

Hacienda agreed to repay the state nearly $11 million plus a $1 million fine. Its new chief executive, Perry Petrilli, said in a statement that “no one currently involved with Hacienda was aware” of the billing practices.

“Although the $12 million repayment and fine included in the civil settlement represent an extreme financial hardship for the company, we agreed to it voluntarily because it’s the right thing to do – and because it gives Hacienda a chance to move forward honourably,” Petrilli said.

The organization will make an initial $7 million payment followed by monthly installments of $50,000.

Joseph Chornenky, an attorney representing Timmons, didn’t immediately return a message Wednesday afternoon seeking comment on his client's behalf.

It’s unclear whether O’Malley has an attorney, and there was no listed phone number for his home in Dewey.

Timmons and O'Malley are accused of overbilling the state and using tax dollars meant to fund its intermediate care facility, where the incapacitated woman lived, to fund other parts of its operation.

Prosecutors allege they used a company associated with Hacienda and located at the same address to buy supplies, which were resold to Hacienda at a 12.5% markup, including a delivery fee. They are also accused of reusing vials of a vaccine but billing insurance companies for a full vial.

Hacienda came under scrutiny after a resident with physical and intellectual disabilities gave birth on Dec. 29, 2018. A licensed practical nurse, Nathan Sutherland, has pleaded not guilty to charges of sexual abuse and abuse of a vulnerable adult. He's awaiting trial in Maricopa County Superior Court.

News from © The Associated Press, 2020
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