David Hamedany, the former director of construction for Huntington Memorial Hospital in Pasadena, Calif., has been sentenced to three years in prison and ordered to pay back the $4.8 million generated from his kickback schemes, according to a news release from the Federal Bureau of Investigations.
Mr. Hamedany headed construction for Huntington from 2006-2010. Beginning in 2008, he organized a kickback scheme in which the hospital paid more than $3 million to companies that didn’t do any work for the hospital. Those companies funneled 90 percent of the hospital’s payments into entities controlled by Mr. Hamedany.
Coinciding with this scheme, Mr. Hamedany conspired with other organizations that were actually working for the hospital. In this arrangement, Mr. Hamedany inflated prices and redistributed that excess money to his other entities.
The schemes resulted in the hospital’s loss of approximately $4.8 million.
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