Former Texas Hospital CEO, Nurse Arrested for Healthcare Fraud
January 25, 2010
Stewart Powers, CEO of the now closed Community Specialty Hospital in Sherman, Texas, and Brandon Allen Ray, RN, were arrested for their roles in a scheme to commit healthcare fraud, according to a news release by the U.S. Department of Justice.
From 2005-2007, Mr. Ray allegedly billed Medicaid $280,550 for private-duty nursing services that he did not actually provide to an invalid patient.
Additionally, Mr. Ray was employed as a part-time RN by Community Specialty Hospital from 2005-2006. During this time, he and Mr. Powers allegedly conspired to embezzle funds from the hospital in a scheme which involved Mr. Ray submitting false work-and-time records to the hospital for payment and Mr. Powers approving the false records and directing hospital personnel to process time cards and write payroll checks. The loss to the hospital is estimated to be $54,000, according to the release.
The two men each face up to 10 years in federal prison if convicted.
Read the DOJ's release on the Sherman, Texas, healthcare fraud scheme.
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