The Securities and Exchange Commission accepted a consent agreement requiring Christi Sulzbach, former general counsel for Tenet Healthcare Corp., to pay a civil penalty of $120,000. The agreement, in which Sulzbach neither admits nor denies the SECs findings, resolves civil fraud allegations brought against her regarding her role in preparing the companys financial reports. The SEC contended that Tenet manipulated its pricing in order to exploit the Medicare outlier program and that the reports failed to disclose an unsustainable strategy to improve Tenets earnings by deliberately exploiting a loophole in Medicares reimbursement system, according to the administrative order approved June 25. Tenet, likewise without admitting or denying the outlier abuse, settled the SECs lawsuit for $10 million in 2007, adding to $788 million paid in 2006 to settle the Justice Departments related allegations under the False Claims Act. The SEC lawsuit also named former Chief Financial Officer David Dennis, former Chief Accounting Officer Raymond Mathiasenboth of whom previously settledand former Chief Operating Officer Thomas Mackey. Sulzbach also has been targeted by the Justice Department in a lawsuit alleging she is personally liable for false claims Tenet submitted to Medicare.
Late News: Former Tenet counsel to pay $120,000 in SEC agreement
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