The attorney for the highest ranking former officer of IT vendor Medical Manager Health Systems said his client and nine other defendants facing federal charges of conspiracy and conspiracy to money launder are in fact themselves the victim of crooks who fleeced the company and, to save their hides, cut deals with federal prosecutors and falsely implicated their former colleagues.
"The charges in the indictment are baseless," said Randall Turk, who heads the white collar criminal defense practice at the Washington, D.C., law office of Baker Botts, in a media statement. Turk is representing Michael Singer, the former chairman and chief executive officer of Medical Manager, a maker of practice management software systems for physician offices. "The only criminals in this case are the government's witnesses, who were caught stealing from the company and, in exchange for reduced sentences, have managed to convince the government that the entire executive team should be held responsible for their actions. Totally innocent people have been wrongfully charged in this indictment. We look forward to Mr. Singer's acquittal at trial."
A spokesman for the U.S. attorney's office in South Carolina, where the investigation is being coordinated, said the probe was ongoing and involved the FBI, IRS and Securities and Exchange Commission. Singer and nine other top-level former managers of Medical Manager, now known as Emdeon Practice Services, a division of Emdeon Corp., formerly WebMD, were indicted by a federal grand jury in Columbia, S.C., on Dec. 9. According to the 43-page indictment, the 10 defendants engaged in a variety of illegal schemes to inflate company revenues and share prices. The government is requesting the court to order the defendants to forfeit more than $41 million from the proceeds of sales of company stock.
In January, two WebMD executives and a former independent Medical Manager software dealer pleaded guilty to mail fraud and agreed to cooperate with federal investigators.