The former vice president of finance and chief financial officer at two-hospital Bon Secours Cottage Health Services, Grosse Pointe, Mich., was charged with one count of wire fraud in connection with an alleged scheme to overstate earnings and assets. The U.S. attorney in Baltimore alleged that David Zilli, 48, falsified financial information reported to Cottage Health's parent, 19-hospital Bon Secours Health System, Marriottsville, Md., from 1998 to 2003. In January 2004, Bon Secours reduced its reported earnings for the five-year period by $117 million and blamed the alleged misstatements at Cottage Health. Last week, Zilli agreed to pay $144,000 to settle a civil accounting fraud complaint filed by the Securities and Exchange Commission. He did not admit wrongdoing. At deadline, neither Zilli nor Bon Secours officials were available for comment. If convicted on the criminal charge, Zilli could face up to 20 years in prison. -- by Mark Taylor
Former Bon Secours hospital exec charged with fraud
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