A former chief executive of hospitals in Wyoming and Indiana has pleaded guilty to defrauding the hospitals out of more than $1.5 million.
Prosecutors say Paul D. Cardwell took nearly $850,000 from Powell Valley Healthcare in Wyoming in 2011 and took about the same amount from White County Memorial Hospital in Monticello, Ind., between 2003 and 2009.
Cardwell pleaded guilty in federal court Wednesday to three counts including conspiracy to commit mail and wire fraud. The Powell Tribune reports sentencing is set for Dec. 23. Cardwell was indicted in 2012.
Prosecutors say Cardwell pretended the money was going toward recruiting staff, but the money actually went to Michael Plake of West Lafayette, who allegedly kicked back most of the money to Cardwell. Plake pleaded guilty and is serving time in a federal prison.
Auditors discovered the scheme in 2011. Cardwell fled to Thailand while free on bond but was caught and extradited to the U.S.
White County Memorial now is part of IU Health, which purchased it from the county in April 2011.
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