Ex-WellCare general counsel gets prison time for role in $35M fraud scheme

The former general counsel of WellCare, Thaddeus M.S. Bereday, has been sentenced to six months in prison for his role in a $35 million healthcare fraud scheme, according to the Department of Justice.

Mr. Bereday, former WellCare CEO Todd Farha, former CFO Paul Behrens, and former WellCare employees William Kale and Peter Clay were indicted March 2, 2011, for allegedly submitting fraudulent documents to Florida's Medicaid program to inflate the costs of behavioral healthcare services. Federal prosecutors said the scheme took place from July 2003 through October 2007.

A federal jury in Florida convicted the four other individuals following a 13-week trial in 2013. However, Mr. Bereday did not take part in the trial due to health-related issues. 

Mr. Bereday pleaded guilty June 27 to one count of making a false statement in connection with healthcare matters.

In addition to his prison term, Mr. Bereday was ordered to serve three years of supervised release and to pay a $50,000 fine.

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