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Clinic Head Charged in $20.5M Fraud Scheme
PHILADELPHIA, PA – Renee Tartaglione, 60, of Philadelphia, is facing federal charges in connection with a $20.5 million fraud scheme involving the Juniata Community Mental Health Clinic (JCMHC). According to a 12-count indictment unsealed in federal court, Tartaglione, the former President of JCMHC’s Board of Directors, misappropriated funds from the non-profit clinic between 2007 and 2015.
The indictment alleges that Tartaglione defrauded and stole money from JCMHC through a series of actions, including purchasing the building on 3rd Street in Philadelphia and repeatedly raising the rent, causing it to increase from $4,500 per month to $25,000 per month. The indictment also alleges that Tartaglione charged the clinic rent of $35,000 per month for the first two years and $75,000 per month for the next three years on a building she purchased on 5th Street in Philadelphia, substantially exceeding market rent.
The indictment further alleges that Tartaglione created false and fictitious documents to make the transactions appear legitimate and took kickbacks from persons who were issued checks drawn on JCMHC’s accounts. Additionally, she caused JCMHC to pay her company, Norris Hancock LLC, more than 12 months of rent in some years.
Tartaglione is also accused of falsifying federal income tax returns by underreporting her income for tax years 2008, 2009, 2010, and 2012. If convicted of all charges, she faces a substantial prison term, restitution, possible fines, supervised release, and special assessments.
The case was investigated by the FBI, IRS Criminal Investigation, and the Philadelphia Office of the Inspector General. It is being prosecuted by Assistant United States Attorney. United States Attorney Zane David Memeger, FBI Special Agent-in-Charge William F. Sweeney, Jr., IRS Criminal Investigations Special Agent-in-Charge Akeia Conner, and Philadelphia Inspector General Amy Kurland announced the charges.
“Non-profit organizations, including those that deliver health care, hold a special place in our society, and the people who manage them are required to act in the best interests of the nonprofit,” said Memeger. “When instead, those trusted leaders decide to commit fraud, and line their pockets with the funds of the nonprofit, they appropriately face the severe consequences of a federal prosecution.”
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Conner. “With both law enforcement and financial investigation expertise, our agents are uniquely qualified to assist federal law enforcement agencies with these types of cases by following the money.”
“We’re committed to holding nonprofits accountable because of what’s at stake: the well-being of some of our most vulnerable friends and neighbors,” said Kurland. “For those who depend on our nonprofits, the impact of fraud is real and direct. It’s the bed that’s no longer available at a local shelter. It’s the shuttered soup kitchen in a neighborhood that desperately needs one.”
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Key Facts
- State: Pennsylvania
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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