The U.S. Securities and Exchange Commission is going after some former WellCare Health Plans executives in federal civil court regarding their alleged actions concerning WellCare's managed-care contracts for behavioral health in the state of Florida.
In 2010, WellCare agreed to pay about $334 million to settle legal actions with various entities related to an alleged $40 million, five-year pattern of fraud in those contracts without admitting or denying any wrongdoing.
Named in an SEC lawsuit as the executives behind the alleged fraud taking place from 2003 to 2007 are: Todd Farha, former WellCare CEO; Paul Behrens, former chief financial officer; and Thaddeus Bereday, former general counsel. The SEC's action, filed in federal court in Tampa, seeks to get back some of the money the executives allegedly received as a result of the alleged fraud, wants them to pay civil penalties and also seeks to prohibit them from serving as an officer or director of an SEC-regulated issuer.
The three executives previously were charged criminally along with two other former executives with conspiracy to commit Medicaid fraud, false statements and other related charges, a case that continues in federal court.
An attorney for the firm representing Behrens declined comment while attorneys listed in court documents as representing the other two couldn't be reached for comment.
A spokeswoman for WellCare declined comment and noted that the company has civil suits pending against the three as well.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
