Second lawyer sentenced for stealing $1.2M from St. Luke's Health System

A district judge sentenced Mark J. Schultz to one year and one day in federal prison without parole July 7 for his role in a fraud scheme to steal $1.2 million from Kansas City, Mo.-based St. Luke's Health System, according to the Department of Justice.

In addition to his prison sentence, Mr. Schultz, 57, must also pay $400,500 in restitution to the health system.

Mr. Schultz pleaded guilty in February to participating in a wire fraud and mail fraud conspiracy from January 2014 through July 2015. His law partner, Alan B. Gallas, 65, was sentenced Feb. 10 to one year and one day in federal prison without parole and ordered to pay $1.2 million in restitution to the hospital.

Mr. Schultz and Mr. Gallas were partners at law firm Gallas & Schultz which collected past-due payments from patients at the health system. In April, Mr. Gallas admitted to having employees put holds on more than $1.2 million in St. Luke's collections and transfer the funds to the law firm's operating account.

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