Provider to Pay More than $8 Million to Resolve Fraud, Bribery Investigation

Preferred Family Healthcare, a Springfield, Missouri-based, not-for-profit provider of treatment and counseling for mental health, behavioral health, and substance use disorders, will pay more than $8 million forfeiture and restitution to the federal government and the state of Arkansas as part of a nonprosecution agreement announced by the US Department of Justice.

The agreement acknowledges criminal conduct of its former officers and employees that resulted in illegal profits garnered from a fraud and bribery scheme.

Preferred Family Healthcare provides its services in Missouri, Arkansas, Kansas, Oklahoma, and Illinois. Most of its funding comes from federally appropriated funds, with Medicaid reimbursement accounting for the largest portion.

Per terms of the non-prosecution agreement, representatives of the organization admitted that former officers and employees engaged in a conspiracy to embezzle funds and bribe elected state officials in the Arkansas House and Senate. Preferred Family Healthcare has been ordered to forfeit nearly $7 million to the federal government and pay more than $1.1 million to the state of Arkansas related to misuse of funding appropriated from the state’s general improvement fund.

“The public should not suffer or be responsible for individuals who abuse their leadership positions out of greed for personal financial gain,” Special Agent in Charge Charles Dayoub, FBI Kansas City Field Office, said in a news release. “It is never acceptable to embezzle and misappropriate funds, especially those that directly impact our health care system. As today’s announcement underscores, although the individuals directly involved are no longer with Preferred Family Healthcare, this organization is accepting responsibility for its employees’ actions.” 

Several former Preferred Family Healthcare executives and former Arkansas legislators have pleaded guilty in separate trials as part of a multijurisdiction federal investigation.

Reference

Missouri health care charity pays over $8 million to resolve federal embezzlement, bribery investigation. News release. US Department of Justice. April 1, 2022. Accessed April 8, 2022.