The U.S. government filed charges against Bereday and four other defendants for defrauding the Florida Medicaid program. The defendants submitted inflated expenditures in the company’s annual reports to AHCA. They inflated expenditure reports to reduce WellCare HMOs’ payback obligations for behavioral health care services.
On June 27, Bereday pleaded guilty to one count of making a false statement related to health care matters. He admitted that they “knowingly and willfully” submitted false expenditure reports on behalf of Healthease to the Medicaid Program in 2006.
Other defendants found guilty for defrauding Florida Medicaid
In June 2013, a jury found the four other defendants guilty for their roles in the scheme to defraud Florida Medicaid program. They were WellCare’s former CEO and CFO Todd Farha and Paul Behrens, respectively. The two other defendants were Peter E. Clay, vice president of medical economics and William L. Kale, vice president of WellCare’s subsidiary.
In May 2014, Judge Moody sentenced Farha to 36 months in prison and Behrens to 24 months in prison. He also convicted Kales to one year and a day in prison and Clay to serve 5 years’ probation.
WellCare settled charges and cooperated with criminal investigation
On May 5 2009, WellCare agreed to settle the related charges filed against it by the U.S. government.
