Patrick Alan Bucknum, 55, former CEO of Community Clinic Network in Wenatchee, Wash., pleaded guilty June 24 to one count of wire fraud, according to a Justice Department news release.
Prosecutors allege Mr. Bucknum began embezzling funds from CCN’s business bank accounts in April 2017 to invest in stocks, options and exchange-traded funds, keep the profits and return the principal. Community Clinic Network managed healthcare payment contracts for a network of clinics across Washington state.
Mr. Bucknum incurred heavy investment losses, prosecutors say, prompting him to divert additional funds in an effort to recover them. Between 2017 and 2023, he allegedly transferred about $30 million from clinic accounts into a personal brokerage account and returned about $7 million to the clinic network over that period.
Prosecutors also allege Mr. Bucknum used clinic funds for personal purchases, including roughly $100,000 for a pickup truck, $77,000 for a Tesla, $33,000 for a boat and $1.2 million in precious metal coins in 2024. As part of the plea agreement, he has agreed to forfeit the vehicles, the boat and the coins.
He faces up to 20 years in federal prison. Sentencing is scheduled for Sept. 23. The FBI investigated the case.
