Kaiser accuses ex-employee of embezzling $7M

A former senior claims manager at Kaiser Foundation Health Plan, a subsidiary of Oakland, Calif.-based Kaiser Permanente, is accused of stealing $7 million from his employer before he was fired, according to the San Francisco Chronicle.

Michael Albert Quinn, 45, was a Kaiser employee for 16 years. His job was to hire outside investigators to track people who were suspected of filing fraudulent claims. Mr. Quinn was authorized to approve up to $50,000 in charges from the investigators, according to the report.

Kaiser filed suit against Mr. Quinn last year, alleging the claims manager used his position to steal from his employer.

"Quinn regularly directed Kaiser to pay invoices for investigative services that were not in fact performed, as well as invoices for work that was performed but nonetheless was not in fact justified," states the lawsuit, which was filed in Alameda County Superior Court.

Kaiser fired Mr. Quinn in July 2014 after learning of his alleged scheme. Kaiser alleges Mr. Quinn processed more than 700 suspicious invoices, totaling more than $7 million. 

According to the San Francisco Chronicle, Mr. Quinn has a  history of criminal behavior. Public records show he has been convicted of two felonies: one for falsifying evidence in a criminal case while he was working as a police officer and another for embezzling $79,536 from Nordstrom while working in the store's loss prevention department.

Regarding the civil suit against Mr. Quinn, Kaiser spokesman John Nelson told the San Francisco Chronicle that "Kaiser Permanente maintains high standards of conduct for its employees and seeks to recover assets that it believes have been improperly diverted."

Mr. Quinn is also being investigated by the FBI, according to the report.

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