The former senior director of the claims department at Pittsburgh-based UPMC Health Plan was sentenced to two years in federal prison on Wednesday for embezzling more than $846,000 from UPMC by putting ghost workers on the payroll, according to the Pittsburgh Post-Gazette.
Ronald Locy was charged in November 2016 with embezzlement in connection with healthcare after the FBI launched an investigation. According to prosecutors, Mr. Locy put his wife on UPMC Health Plan's payroll in 2005. Although she performed no work for the insurer, the company paid her $785,145 in wages and bonuses between 2005 and 2013.
Mr. Locy also arranged for his family's nanny to be placed on UPMC Health Plan's payroll. She was paid $62,000.
Mr. Locy pleaded guilty in January 2017.
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