CEO, CFO of Kentucky medical clinics sentenced for pocketing employees’ benefit contributions

Former CEO Ann Sonderman Giles was sentenced to 30 months in prison and former CFO Lu Anne Wallace was sentenced to 33 months. They were executives for a number of business, including GW Management, Clark Medical Ventures, Madison Primary Care, Paragon Kentucky and Primary Care of the Bluegrass, all signed up to do business in Kentucky..

The sentencing followed the set reached a plea arrangement with prosecutors. As part of the contract, the federal government dismissed 4 counts of an indictment from June 2019 in which a grand jury charged Ms. Giles and Ms. Wallace with embezzling health care plan funds..

The pair were sentenced after a joint investigation by the U.S. Labor Department and IRS. The examination revealed that Ms. Giles and Ms. Wallace stopped working to pay IRS-mandated trust fund taxes on the income earned by their business and their staff members from January 2014 to July 2017..

For the first half of 2014, Ms. Giles and Ms. Wallace likewise withheld insurance premiums from incomes for workers at GW Management and did not move those funds to Humana or any other health insurance company..

The former CEO and CFO of several Kentucky healthcare companies recently were sentenced to prison and bought to pay restitution for their involvement in a yearslong plan in which they collected federal taxes from employees and stopped working to turn them over to the federal government, the U.S. Department of Labor announced Oct. 19..

Ms. Giles and Ms. Wallace conspired to defraud the federal government of more than $1.5 million, according to the Labor Department..

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” While the set withheld Social Security and Medicare taxes from their employees paychecks, they knowingly and willfully stopped working to turn over the cash to the U.S.,” the Labor Department mentioned..

The women likewise were purchased to pay $1.5 million in restitution..

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