WASHINGTON – A former executive of a nursing home company operating in North Carolina and Virginia was sentenced to serve 63 months in prison for accepting kickbacks from contractors and evading federal income taxes, the Department of Justice announced.
John D. Henderson, of Colonial Heights, Va., was sentenced in U.S. District Court in Roanoke, Va., by Judge Samuel G. Wilson for his participation in two separate conspiracies involving kickback schemes and tax evasion.
Henderson pleaded guilty on March 14, 2012, to two counts of conspiracy to commit mail and honest services fraud for the kickback schemes and to two counts for failing to include the kickbacks and other income he received on his federal income tax returns for years 2005 and 2006.
According to the four-count felony charge, Henderson oversaw the bidding process for repair, maintenance and renovation contracts at Medical Facilities of America Inc. facilities. To facilitate the conspiracies, Henderson steered contracts to several vendors in return for kickbacks, created fictitious competitor bids that were higher than the quotes submitted by the vendors who paid him, and directed subordinates to solicit quotes only from vendors who paid him.
Henderson received more than $560,000 in kickbacks and had at least $101,000 more paid to a co-conspirator, and in return steered Medical Facilities of America Inc. contracts totaling more than $5 million. Henderson is the fifth individual to plead guilty in the Department of Justice’s fraud investigation into the award of repair, maintenance and renovation contracts at facilities owned by Medical Facilities of America Inc.
“Through this kickback scheme, Henderson and his co-conspirators deprived Medical Facilities of America Inc. of competitive pricing to its financial detriment,” said Acting Assistant Attorney General Joseph Wayland in charge of the Antitrust Division. “Today’s sentencing demonstrates the division’s commitment to holding executives accountable for disrupting the competitive bidding process for service contracts.”
In addition to his prison sentence, Henderson was ordered to pay a total of $698,088 in restitution and additional taxes, penalties and interest to the Internal Revenue Service for his participation in the conspiracies. The investigation is being conducted by the Antitrust Division’s Philadelphia Field Office, the U.S. Attorney’s Office for the Western District of Virginia, the FBI in Roanoke and the Internal Revenue Service-Criminal Investigation in Roanoke. Anyone with information concerning fraudulent behavior relating to the award of contracts by Medical Facilities of America Inc. should contact the Antitrust Division’s Philadelphia Field Office at 215-597-7405 or visit www.justice.gov/atr/contact/newcase.htm
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