FierceHealthcareFierceHealthITFierceHealthFinanceFierceEMRHospital ImpactFierceMobileHealthcare   FiercePharma

Siemens execs convicted of $49M hospital fraud

Tools
Tags
profits
fraud

Two former Siemens executives pled guilty this week rigging a $49 million contract to provide equipment to a Cook County (Illinois) hospital. To engineer the fraud the two execs, Daniel P. Desmond and Ellen Roth, had claimed they were following rules for fostering a minority participation in their contract with the county's John H. Stroger hospital. In their bid, two claimed they had joint-ventured with a minority partner which would share 30 percent of profits from the deal. In reality, the two had set up a behind-the-scenes payoff under which the alleged minority partner would get a flat $500,000 fee for its participation. Siemens has agreed to pay a $1 million fine and $1.5 million in restitution for its role in the fraud.

To find out more about the case:
- read this Associated Press article

Related Article:
Siemens corruption probe widens: $556M. Report

Bookmark and Share
Get Your FREE FierceHealthcare Email Newsletter:
Be the first to comment

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

To combat spam, please enter the code in the image.