Beginning in 1987, I independently discerned and resisted two otherwise unrelated architects of Enron-class, healthcare fraud, Rebecca Parrett (1987) and Richard Scrushy (1998) - in both cases years before their respective multibillion-dollar frauds became known. My report was published on its website and in the Congressional Record by the House Ways & Means Committee.

Billion-Dollar Fraudster and EMAI Business Manager Rebecca Parrett

Rebecca Parrett was, for nearly two decades, vice president and business manager of Emergency Medicine Associates, Inc. ("EMAI"). In 1987, my partners and I ousted Parrett's EMAI from St. Ann's Hospital for what we would have described as "parasitic" business practices. Parrett went on to become one of the architects of the billion-dollar National Century Financial Enterprises fraud. Parrett even had her own page on America's Most Wanted. She is now serving twenty-five years in federal prison. See also e.g., Columbus Credit Co. v. Evans, 1992.

Hospital CEO Donald Ayers

Donald H. Ayers "was a successful hospital administrator" at Columbus hospitals, United States v. Ayers, 759 F.Supp.2d 945 (2010). Before they formed National Century Financial Enterprises, emergency department business manager Parrett was romantically involved with hospital CEO Ayers. Ayers and Parrett married and together they orchestrated the three-billion-dollar NCFE fraud. This former hospital CEO is now serving ten years in federal prison.

Richard Scrushy's Acts in Ohio as Chairman of MedPartners

Beginning in 1998, I discerned and resisted Richard Scrushy's Ohio conduct as Chairman of MedPartners. As MedPartners' chairman, Richard Scrushy succeeded Larry House as party to a contract with Clifford Findeiss. Richard Scrushy founded MedPartners. Prior to 1998, Larry House was its CEO. Larry House built the largest mansion in America by "managing" physicians. House originally contracted with Findeiss who became the central player in these Ohio matters. Findeiss was paid $1.5 million to acquire emergency department contracts on behalf of MedPartners. MedPartners lost nearly a billion dollars in market capitalization in early 1998 (and changed its name to Caremark (CMX) in 2000. House was fired in 1998 and Scrushy took over as CEO. As MedPartners' chairman, Scrushy became party to the contract whereby he paid Findeiss the $1.5 million to acquire emergency department contracts and Findeiss had a direct, contractually defined reporting relationship with Scrushy. The hospital CEO brought Findeiss in to be the hospital's "negotiating agent." In 1998 and for years afterward, the hospital and the MedPartners subsidiary denied that anyone at the hospital was ever paid by MedPartners. This was a false representation by the parties and their attorneys. At the pertinent time in 1998, Hospital agent Findeiss was secretly paid what amounted to a $1.5 million under-the-table bribe to acquire the emergency department contract on behalf of MedPartners. After years of denial by the hospital and the MedPartners contracting subsidiary, I eventually found the Scrushy-Findeiss contract defining this payment and Findeiss' reporting relationship with Scrushy buried deep in a four-hundred-page SEC filing.

Richard Scrushy's Acts in Alabama as Chairman of HealthSouth

Richard Scrushy was indicted on eighty-five felony counts for the HealthSouth fraud. He may be considered the Al Capone and the O.J. Simpson of health care. Scrushy was like Capone in that the government failed to convict him on the original criminal indictment and later found him guilty of some lesser financial offense. Scrushy was like Simpson in that he was acquitted on criminal charges and then found liable for the related civil offense. Scrushy was sanctioned by the SEC and fined $81 million. He was found liable for a $2.9 billion civil fraud. This was thought to be the largest civil fraud verdict ever levied against an individual. Scrushy also spent five years in federal prison for bribing the governor of Alabama.

This website is still under construction. Further details on Richard Scrushy's Ohio fraud will be forthcoming. here.